New Zealand inflation likely to reach mid-point of RBNZ target band: IMF

[WELLINGTON] The International Monetary Fund (IMF) said on Tuesday that it believed New Zealand inflation would return to the mid-point of the central bank's target range given the country's relatively strong economic growth.

Thomas Helbling, the IMF's Australia and New Zealand mission chief, said that reaching 2 per cent had been challenging for the Reserve Bank of New Zealand in recent years due to low global inflation but that forecasts showed inflation picking up to the mid-point of the bank's 1 to 3 per cent target band."Given where the economy is now we think that will be achieved if the economy evolves as expected," said Mr Helbling.

The comments came as part of the IMF's annual visit known as an 'Article IV' consultation.

REUTERS