Alan Bollard
Alan Bollard
Alan Esmond Bollard CNZMis the Executive Director of Asia Pacific Economic CooperationSecretariat for the period of 2013-2015. He fully assumed the role on 1 January 2013, which was also the official commencement of Indonesian APEC year of 2013. He was previously the Governor of the Reserve Bank of New Zealand, having been appointed on 23 September 2002. He succeeded Donald Brash in this role...
assumed bring domestic earlier ease easing expect given inflation policy position pressures rapid reduction require slowing target time towards
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.
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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.
caviar cooked eating everybody lightly likes
Whitebait is New Zealand's caviar and is special. Everybody likes eating whitebait, especially lightly cooked in fritters.
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We now see the exchange rate as exceptionally high, and in some respects this is unjustifiable. In time, it will fall. Investors who think that the New Zealand dollar only goes up will be set for disappointment.
cut further future policy prospect prove remains
Further policy tightening may still prove necessary. Certainly, there remains no prospect of a cut in the foreseeable future.
achieve capacity concerned demand domestic inflation momentum ongoing pressures remain seen tight
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.
average consumer easing further future housing inflation kept medium moderation noticeable prospect range ruled spending target within
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.
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The decline in the exchange rate will either be gradual, as domestic spending pressures ease, or it will be more abrupt as global investors reassess New Zealand as an investment destination.
action further increase interest necessary rates
That's why we will keep making these warnings and if necessary take further action, ... can increase interest rates and we can do it in a way that really hurts.
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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,
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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.