Yesterday the Reserve Bank held its cash rate in its first monetary statement of the year.
The RBNZ took a softer tone with none of the threats of rate rises heard last November.
Instead, they talked about balanced inflation risks and an economy headed for a soft landing.
But the room to tolerate any negative inflation surprises is limited, and the central bank is ready to act if global risks start to spill over into local price behaviour.
Governor Adrian Orr spoke to RNZ business editor Gyles Beckford.
