So there is good reason for businesses in New Zealand to be more optimistic about the future than is the case in many of our trading partners: New Zealand starts from a situation of relatively strong growth, and there is ample scope for monetary policy to stimulate the economy if that should be needed, without jeopardising price stability.
And second, a more robust global recovery, mostly fuelled by emerging markets, but also by promising signs from across the Atlantic. Our projections for inflation show an increase of prices of 1.4 per cent in this year and 1.3 per cent next year. Most importantly, inflation expectations as securely anchored. Hence, we see no upside risks to price stability at the moment.