RBNZ's Wheeler sees 'continued strong economic growth', higher inflation, but with some risks
Reserve Bank governor Graeme Wheeler says the prospects are good for "continued strong growth" in the New Zealand economy in the next 18 months, with monetary policy accommodative enough to ensure inflation picks up after holding at unusually low levels for two years.
"The low point for CPI inflation has probably passed and, supported by the improvement in global commodity prices in recent months, we expect the December quarter 2016 CPI data to confirm that annual CPI inflation is moving back within the 1 to 3 per cent target band," Wheeler said in a speech in Greymouth this morning.
In the absence of major unanticipated shocks, economic growth was likely to be "driven by construction spending, continued migration, tourist flows, and accommodative monetary policy."