RBNZ Governor Breman notes that although central bank remains forward focus, monetary policy will adapt based on new information instead of following a predetermined path

Governor Breman of the RBNZ emphasizes a flexible approach to monetary policy, indicating that decisions will adapt to incoming data rather than follow a strict trajectory.

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Japanese S&P Global Services PMI Flash (Feb) 53.8 (Prev. 53.7)

Japanese S&P Global Services PMI Flash (Feb) 53.8 (Prev. 53.7)

RBNZ Governor Breman notes that although central bank remains forward focus, monetary policy will adapt based on new information instead of following a predetermined path

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Says:

  • Path back to 2% inflation has been bumpy, but expects inflation to be within the target range in Q1.
  • Central bank is confident inflation will return to 2% midpoint over the next 12 months.
  • NZD is not too far from fair value right now.
Context

This suggests the central bank is cautiously optimistic about inflation returning to target soon, which could impact market expectations for interest rates and the NZD moving forward.

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