RBNZ warns temporary inflation shock could become persistent | Herald NOW Busin…

RBNZ warns temporary inflation shock could become persistent | Herald NOW Business <!--mynz:youtube-chapters--> {"v":1,"chapters":[{"timeSeconds":1,"label":"RBNZ Warns of Persistent Inflation","summary":"The Reserve Bank of New Zealand is warning that a temporary inflation shock could become persistent. Businesses are advised not to relax their efforts to manage costs."},{"timeSeconds":14,"label":"RBNZ Chief Economist Interview","summary":"Paul Conway, Chief Economist at the Reserve Bank of New Zealand, joins the program to discuss inflation."},{"timeSeconds":18,"label":"Risk of Inflation Becoming Persistent","summary":"The interviewer asks about the risk of the oil shock feeding into higher inflation, and how businesses are handling cost increases."},{"timeSeconds":26,"label":"RBNZ's Inflation Forecast","summary":"Conway clarifies that their central scenario is for inflation to drop to 2% within 12 months, but acknowledges an upside risk."},{"timeSeconds":50,"label":"Business Response to Cost Increases","summary":"The interviewer inquires about why businesses might be more inclined to raise prices than lower them, even with changing economic conditions."},{"timeSeconds":113,"label":"Firms Raise Prices More Readily","summary":"Research indicates that firms are quicker to raise prices than to cut them, especially with new technology making price adjustments easier."},{"timeSeconds":213,"label":"OCR Outlook and Neutral Rate","summary":"The discussion turns to the OCR outlook, with the RBNZ's working assumption for the neutral rate being between 2.25% and 3.5%."},{"timeSeconds":357,"label":"RBNZ's Consistent Message","summary":"Conway states the RBNZ maintains a consistent message about inflation and the OCR, adapting their approach as economic data evolves."}]} <!--/mynz:youtube-chapters-->