Nonetheless, the subsequent rise in international food and energy prices would still have led to headline Consumer Price Index inflation exceeding 6% now. In an absolute sense, actual and expected inflation is too high and needs to be reduced. Subsequent Monetary Policy Committee decisions have seen the OCR rise from 0.25% in August 2021 to the current rate of 4.25%.
Our actions display the Monetary Policy Committee's determination and confidence in returning annual inflation to within our 1% to 3% target range. Our focus on low and stable inflation is the best contribution we can make to the overall wellbeing of New Zealanders. In a relative sense, New Zealand is in a strong macroeconomic position relative to most OECD nations.