Wellington, September 22 (QNA) - Governor of the Reserve Bank of New Zealand, Anna Breman, warned on Tuesday that if recent gains in ​oil prices persist, it may push near-term inflation rates to slightly higher levels than the bank's previous forecast.

“Recent increases in global oil prices ​and longer-term interest rates reflect the challenging environment we face,” Breman said. “If higher oil prices persist, they are expected to result ​in somewhat higher near-term inflation than we assumed in ​the September statement,” Breman said.

New Zealand public radio RNZ quoted Breman as saying, in statements published on the bank's website, that the New Zealand economy is showing signs of recovery, although the pace of growth varies between the country’s regions.

She explained that the GDP data showed that the economy grew by 0.2% during the three months in June, despite the repercussions of high oil prices and other global economic challenges, noting that other indicators note the continuation of the recovery during the current quarter, albeit at a varying pace. The Governor of the Reserve Bank of New Zealand pointed to the strength of the South Island economy, supported by the resilience of the export sector, low unemployment rates and the strength of the housing market, expressing her expectation that the economic recovery will gain strength and breadth across the country, supported by the performance of the export sector and the gradual increase in household spending.

She also expected labor market conditions to improve as the economic recovery accelerates, along with higher household purchasing power as inflation returns to the 2% target.

The Reserve Bank of New Zealand is due to review its official interest rate in late October, with Breman confirming that the bank will assess incoming economic data and global developments before making its next decision, focusing on medium-term inflation expectations. (QNA)