NZ: No policy implications from today’s speech by McDermott - TDS

Research Team at TDS, notes that the NZ food prices for June rose +0.4%, a low outcome compared with buoyant seasonals (5yr ave +1.4%). 

Key Quotes

“This has very little impact for CPI with fuel the more important driver.  TD keeps its Q2 CPI forecast at +0.6%/qtr, further details can be found here.

There were no policy implications from today’s speech by the Assistant Gov and Head of Economics Dr John McDermott. The speech centred on the RBNZ process of formulating and assessing monetary policy decisions. The key message was that the decision on rates is not made solely by Gov Wheeler. While today’s paper stated that low inflation is research department focus, last week’s speech by Dep Gov Spencer revealed that financial stability is the Bank’s top policy focus."