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Shadow Board recommends no change to the OCR in July
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 labour 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. Regarding where the OCR should be in a year, the Shadow Board’s views ranged from 4.50 percent to 6 percent ... (full story)