Reserve Bank of New Zealand (RBNZ) Assistant Governor Karen Silk noted early Wednesday that the RBNZ is increasingly confident it will achieve target inflation levels using its current monetary policy strategy, though maybe not as quickly as many would like.

Key highlights

Confident inflation will converge back to 2% target midpoint in medium term.

Assessing and managing inflation amidst economic risks.

Monetary policy supportive of inflation objectives.

RBNZ Committee is gaining confidence in monetary policy effectiveness.

Bank funding spreads have risen year on year.