21 Oct 2014

AMP expects inflation will arrive eventually

7:59 am on 21 October 2014

Even though inflation has been unexpectedly much more benign, the chief economist at one of New Zealand's major fund managers expects that price pressures will build.

AMP Capital sign

AMP Capital sign Photo: RNZ / Diego Opatowski

Bevan Graham at AMP Capital is still among the most hawkish economists in expecting the Reserve Bank will need to raise the official cash rate again as early as March next year.

Figures due on Thursday are expected to show inflation in the September quarter under-shooting the Reserve Bank's forecast and that the annual rate of 1.1 or 1.2 percent was near the bottom of the central bank's 1 to 3 percent target range.

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