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Shadow Board recommends no change to the OCR in November
Most Shadow Board members recommended the Reserve Bank keep the Official Cash Rate (OCR) unchanged at 5.50 percent in the upcoming Monetary Policy Statement on 29 November. The impact of previous OCR increases is coming through as many households move onto much higher mortgage rates. The latest data also indicates an easing in inflation and labour market pressures. One member recommended the Reserve Bank should increase the OCR by 25 basis points, given inflation expectations and core inflation remain elevated. Regarding where the OCR should be in a year’s time, the Shadow Board’s core view ranged from 4.50 ... (full story)