Inflation expectations and the conduct of monetary policy in New Zealand

Release date
14/03/2016
Reference
Vol. 79. No. 4. March 2016
Authors
Michelle Lewis; Dr John McDermott; Adam Richardson
ISSN
1177-8644

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.