WELLINGTON, Sept. 22 (Xinhua) -- New Zealand faces somewhat higher near-term inflation if global oil prices remain elevated, Reserve Bank of New Zealand (RBNZ) Governor Anna Breman said Tuesday.
"Recent increases in global oil prices and longer-term interest rates reflect the challenging environment we face," Breman said during a visit to Dunedin on New Zealand's South Island.
"If higher oil prices persist, they are expected to result in somewhat higher near-term inflation than we assumed in the September statement," Breman said in an RBNZ statement.
The visit followed the RBNZ's September monetary policy statement, which said New Zealand's economic recovery was underway but "not being felt evenly across the country."
Breman said recent data showed the economy grew 0.2 percent in the three months to June, despite the effects of high oil prices and other global headwinds, while other data suggested the recovery was continuing in the current quarter but remained uneven.
Economic conditions were stronger in parts of the South Island, supported by resilient export activity, lower unemployment and stronger housing market performance than in many other parts of the country, she said.
"We expect the economic recovery to strengthen and broaden, reflecting a resilient export sector and gradual increase in household spending," said the governor.
The RBNZ will assess incoming data and global developments ahead of its next monetary policy decision in October, Breman said. ■
