Reserve Bank Not Worried About Inflation

Reserve Bank Not Worried About Inflation 
Weekly Commentary ... by Tony Alexander

The Reserve Bank surprised the markets today not by leaving the cash rate unchanged at 1.75%, but failing to adopt a tightening bias (warning of rate rises) which most expected. That has caused the NZD to fall close to US68 cents but doesn’t change the risk that bank lending rates will continue to edge slowly higher while lending rules get tighter and tighter.    

​You will find the  Weekly Overview at this link.
http://tonyalexander.co.nz/wp-content/uploads/2017/05/WO-May-11-2017.pdf