RBNZ’s John McDermott to speak - ANZ

Analysts at ANZ explained that today, RBNZ’s John McDermott will be delivering a speech entitled “Inflation targeting in New Zealand: An experience in evolution”.

Key Quotes:

"We expect the speech will document the RBNZ’s work and thinking on their monetary policy framework as they move to a dual mandate (with details on Governance expected a bit further down the track)."

"The speech is likely to: document New Zealand’s success with inflation targeting (low and stable inflation), discuss why flexibility is important for doing this well, discuss international experience with dual-style mandates, and outline how the Bank will manage its objectives in practice."

"The speech is likely to say that taking into account employment is already an important part of flexible inflation targeting and that moving to a dual mandate is an evolution in that flexibility."