RBNZ needs to look the inflation beast in the eye
Conway said inflation was the “monster” and the bank “needed to look the beast in the eye.”
His comments come as the bank prepares to lift the official cash rate again and economists have recently increased their forecasts for the peak OCR this cycle.
Conway said that last week's 7.2% inflation jump was a lot higher than the Reserve Bank's own forecast of 6.4%.
He blamed both tradable and non-tradable inflation, saying domestic inflation came in at 6.6%, largely driven by construction costs and council rates. And that was similar to the RBNZ's forecasts.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)
