Core inflation and most measures of inflation expectations have declined. Risks to the inflation outlook have become more balanced. RBNZ have limited ability to tolerate upside surprises. Heightened geopolitical and climate conditions remain a risk for inflation (such as the recent rise of shipping costs). The Committee remains alert to cost pressures and will act if necessary. The Committee remains confident that the current level of the OCR is restricting demand. The OCR needs to remain at a restrictive level for a sustained period of time. {table} The RBNZ held rates at 5.5% to send the New Zealand dollar broadly ... (full story)