WELLINGTON, July 13 (Reuters) - New Zealand's central bank said on Wednesday it remained focused on the "persistent period" of weaker-than-expected inflation, and is continually reviewing its forecasts.
"Increasing our understanding of low inflation is a strategic priority for the Bank," said Reserve Bank of New Zealand assistant governor John McDermott in a speech released on the bank's website.
"Since the financial crisis, inflation has been weaker than forecast, and the Bank has continually reviewed its forecast performance over this period. Recent research has shown that the Bank’s forecast performance has been reasonable when compared to a number of external and model-based benchmarks," he said.
New Zealand, like many countries around the world, has faced a period of persistently low inflation. The central bank is mandated with keeping inflation within a 1 and 3 percent target range. Inflation was running at 0.4 percent in the first quarter.
