25 Low inflation had also changed the price-setting behaviour of New Zealand businesses, who were placing a greater weight on recent low inflation (rather than expectations of future inflation) in their wage-setting and pricing decisions. 26 Incorporating these lessons into our forecasting framework meant that by mid-2015 the most probable scenario had changed to a continuation of low inflation (figure 4).
The history of the Central Bank is very much intertwined with the history of the country, and most of us here today are a part of that history. It is a rich history, and like any other, it is marked by peaks and troughs, shadows and lights, but it is a history that we are proud of.