There also appear to have been changes in how inflation is generated in New Zealand: the drivers and composition of net immigration influence the degree of 8  I recently delivered a speech that discussed this forecast review in more detail: “How the Bank formulates and assesses its monetary policy decisions” (2016) 9 Lees, Kirdan (2016). “Assessing forecast performance”, RBNZ Bulletin, 79(10).
10 Reid, Geordie (2016), “Evaluating the Reserve Bank’s forecasting performance”, RBNZ Bulletin, 79(13). 17  associated inflationary pressure for any given migration flow, and inflation expectations appear to now place more weight on past inflation outcomes than they did prior to the GFC.