Alan Bollard Inflation Quotations

Given the time it will take to bring inflation back towards the mid-point of the target band, we do not expect to be in a position to ease policy this year. Any earlier easing would require a more rapid reduction in domestic inflation pressures than the substantial slowing already assumed in our projections.

The prospect of further tightening may only be ruled out once a noticeable moderation in housing and consumer spending is observed, ... Certainly, we see no prospect of an easing in the foreseeable future if inflation is to be kept within the 1% to 3% target range on average over the medium term.

We have seen ongoing momentum in domestic demand and persistently tight capacity constraints, ... We remain concerned that inflation pressures are not abating sufficiently to achieve our medium-term target.

There's inflation activity in the system, there's cost and wage pressures in the system, and we need to see that abate before we're prepared to see interest rates come off.

The most serious risk to medium-term inflation is the continuing strength of household spending, supported by a relentless housing market and rapid growth in mortgage lending,

The correction of these imbalances and associated inflation pressures will require a slowdown in housing, credit growth and domestic spending, ... We also expect a significantly lower exchange rate.