RBNZ to ‘Act Decisively’ If Core Prices Pick Up, Breman Says

New Zealand’s central bank will respond with interest-rate increases to any acceleration in core inflation, Governor Anna Breman said Thursday, as fuel prices surge in response to the conflict in the Middle East.

“The balance of risks have shifted in terms of inflation, and there are more risks on the upside,” Breman told Bloomberg TV in an interview. “We are expecting somewhat weaker growth, but we are concerned that medium-term inflation pressures could be higher. If we do see that medium-term inflation starts picking up, then we will act decisively and that means rate hikes.”