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|
The higher outlook for the OCR than in the
February Statement reflects the higher
starting point for non-tradables inflation
and capacity pressures, as well as a higher
medium-term outlook for tradables inflation
based on higher import prices, higher global
interest rates and the lower New Zealand
dollar exchange rate. In addition, our
assumption for the nominal long-run neutral
interest rate has been revised from 2.50
to 2.75 percent, based on increases in the
Reserve Bank’s suite of neutral interest rate
indicators. |
|