This article compares the performance between external forecasts and Reserve Bank of New Zealand published projections for real GDP growth, CPI inflation, the 90-day interest rate and the trade weighed index (TWI) to examine the accuracy of different forecasts. Since 2003, the Reserve Bank has...

The Forecasting and Policy System model (FPS) has been a very useful tool for forecasting and communication at the Reserve Bank of New Zealand. In part, its success has been due to pragmatic use, and the evolution of the model to reflect changing views of the New Zealand economy. However, as...