We don’t have any inside knowledge of whether the RBNZ Governor attended the recent Rolling Stones concert. But if he did, we suspect one particular song would resonate with the Governor’s day job. The inflation outlook remains very benign. Recent developments point to lower inflation pressures, relative to the September MPS. Consequently, the RBNZ has plenty of time on its side to wait for more tangible signs of inflation before there is any need for a rate hike encore – particularly given how low fixed-term mortgage rates are.
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