Your browser is not supported

Our website does not support the browser you are using. For a better browsing experience update to a compatible browser like the latest browsers from Chrome, Firefox and Safari.

Inflation expectations and the conduct of monetary policy in New Zealand

Michelle Lewis, Dr John McDermott, Adam Richardson

Inflation expectations are a key component to consider for any inflation-targeting central bank. This article outlines the importance of inflation expectations in the conduct of monetary policy, discusses some useful tools the Bank has developed to assess the policy implications of inflation expectations, highlights recent trends in inflation expectations, and draws out the implications for current monetary policy settings in New Zealand.