The Finance Minister says she's okay with a short spike in inflation. 

The Reserve Bank has slashed the cash rate 50-basis-points to 2.5% and is leaving the door open to further cuts. 

It expects inflation to reach or surpass 3% in the short term but believes the economy is weak enough to push inflation back down again next year. 

Nicola Willis told Mike Hosking we won't see another long-period of sustained much-higher inflation. 

She says a little blip's okay, but the three years of high inflation under the last government is not okay. 

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