Alan Bollard, the governor of the Reserve Bank of New Zealand, on Thursday said the forthcoming increase in the country's goods and services tax would have little impact on monetary policy, so long as inflation expectations remained anchored.

Bollard said the New Zealand government's goods and services tax hike, introduced on 1 October, was the most significant event this year. The tax would push headline inflation substantially higher, as the it would have a direct impact on goods and services