NZIER Shadow Board recommends RBNZ to keep OCR steady in July

According to the latest recommendation by the New Zealand Institute of Economic Research (NZIER) on Monday, the Reserve Bank of New Zealand (RBNZ) should leave the Official Cash Rate (OCR) unchanged at 5.50% when it meets this Wednesday for its monetary policy decision.

Key takeaways

“Most Shadow Board members recommend the Reserve Bank should keep the Official Cash Rate (OCR) at 5.50 percent in the upcoming July Monetary Policy Review.”

“While inflation pressures are still high and the labor market remains strong, the slowing in demand and economic activity and expectations for previous OCR increases to work their way through the New Zealand economy warrant a hold on further tightening.”

“However, one member recommended a 25-basis point increase, reflecting the view that inflation is sticky.”