The Reserve Bank Of New Zealand May Start Easing Policy Before Inflation Falls To 2%

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On Thursday, Bloomberg reported that New Zealand Reserve Bank President Orr said the central bank may start easing policy before inflation reaches its target of 2%.

Key summary

Avoid the risk of inflation expectations exploding.

Patience with inflation has not yet been exhausted.

Policy will not rely on any single economic data.

Easing measures can be initiated before the inflation rate reaches 2%.