Reserve Bank of New Zealand Deputy Governor Hawkesby restrictive policy needed to ensure inflation expectations anchor at 2%.policy is going to stay restrictive for some time yet.policy will need to stay restrictive even when the output gap is negative.we think the output gap now is around zero, if not a bit negative.we don't have a lot of room to maneuver when it comes to future inflation shocks.we are on the right path with inflation, have to hold our course.not in a mindset to cut rates now, will be cutting sometime down the track.more to come This article was written by Eamonn Sheridan at www.forexlive.com.
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