“While a lower-than-otherwise near-term surge in inflation, alongside recent headlines that the US and Iran have agreed to a Memorandum of Understanding, is certainly welcome, this doesn’t fully unwind the global supply shock, and it is still early days as far as the medium-term inflation outlook is concerned,” said senior economist Miles Workman. “The RBNZ’s top priority is to ensure that the current surge in inflation does not broaden into core inflation over the medium term, and that suggests it remains appropriate to start withdrawing monetary stimulus from July.”