RBNZ says factors behind globally low inflation need to be confronted

FILE PHOTO: A security guard stands in the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand, July 3, 2017. REUTERS/David Gray

WELLINGTON (Reuters) - New Zealand's central bank said on Friday the structural and cyclical factors causing low inflation globally needed to be confronted for monetary policy to be successful over the next 30 years.

"We are now faced with stubbornly low inflation and low interest rates, driven by structural and cyclical factors," Christian Hawkesby, Reserve Bank of New Zealand Assistant Governor and General Manager of Economics, Financial Markets and Banking said in a statement. "If monetary policy is to be successful for a further 30 years, we need to confront these challenges."

RBNZ and the International Monetary Fund are hosting a conference in Wellington next week to discuss issues around monetary policy, the labour market, and the future of inflation targeting.

(Reporting by Praveen Menon; Editing by Sam Holmes)