4  The Dominion, 31 October 1990. BIS Review 5/2002  3  employers and unions to adjust their wage settlements to levels which were quite quickly consistent with the inflation target. There was also a very large reduction in the spread between the yield on New Zealand government New Zealand dollar long-term bonds and that on US Treasuries.
•  With larger and more persistent excess supply in the economy, both total CPI and core inflation are expected to return more gradually to 2 per cent, around the end of 2015.