The Reserve Bank says inflation's too high, but it's actually worried it could soon end up too low.

It's kept the OCR unchanged at 2.25 percent.

New Governor Anna Breman says they're not happy with headline inflation surpassing the one-to-three percent target band last quarter.

But she says underlying core-inflation is much lower, and wage growth slow.

She explained that unless the economy rebounds, they think inflation might actually fall below the target.

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