Waller: The Dollar's International Role

post: ECB's Scicluna: Open To Rate Cut In March As Inflation Fades - ‘Choker' On Economy Should Be Loosened post: ECB'S SCICLUNA: EUROPE'S ECONOMY IS FACING A SOFT LANDING.

Ladies and gentlemen, It is a pleasure and a privilege for me to speak today on the eve of the Munich Security Conference, one of the most important global events that takes place ...

post: *RBNZ'S ORR: 2% MID-POINT INFLATION TARGET REMAINS APPROPRIATE post: RBNZ GOVERNOR ORR: BRINGING LEVELS OF ‘CORE’ INFLATION IN LINE WITH OUR 1 TO 3% TARGET IS AN IMPORTANT PART OF BRINGING INFLATION BACK 2% MIDPOINTOrr: The Monetary Policy Remit and 2% inflation The past few years have seen the emergence of persistent core inflation off the back of the COVID-19 pandemic. Tackling these persistent inflationary pressures and bringing levels of ‘core’ inflation in line with our 1 to 3% target is an important part of bringing inflation back down to the 2% midpoint. In this context, a flexible approach to inflation targeting, with a medium-term focus, remains appropriate. This provides the Monetary Policy Committee with the ability to weigh different considerations when responding to shocks to the economy. The Reserve Bank believes that the current 2% mid-point inflation target remains appropriate for New Zealand. “2% continues to strike the right balance between the costs and benefits of inflation,” Mr Orr says. “A focus on 2% appears to be consistent with an ‘optimal’ level of inflation.” “In the long-term, an inflation target centred on 2% is more likely to mean continued growth and steady jobs, supporting the prosperity and wellbeing of everyone,” he says.