Below is a link to an interview with RBNZ Governor Adrian Orr on National Radio’s Morning Report last week. For those new to economics he explains the concept of supply and demand in layman’s terms with regard to inflation. Notice that he doesn’t mention the word ‘recession’ although talks of a couple of quarters of negative activity. As was predicted the RBNZ increased the OCR by 50 basis points to 4.75%.
Remember in 2012 the focus for inflation was given to 2% which is the mid-point in the 1-3% band. Later in 2018 an additional policy objective was added to maintain a maximum sustained employment. Worth a listen. Also below is a mindmap on monetary policy which might be useful.