All this has taken place in the context of unprecedented global monetary accommodation and, more recently, a significant slowdown in China and other emerging market economies. The PTA explicitly recognises (as has been the case), that annual headline inflation may fall outside the target band because of exceptional movements in commodity prices.
The mediumterm focus of policy means that the Bank does not try to immediately correct deviations of inflation from its target range, but aims to do so steadily over time. Strong net migration flows have contributed to higher house price inflation, especially in Auckland, which attracts over half of the net migrant flow.