The Shadow Board is divided over whether the Reserve Bank should increase the Official Cash Rate (OCR) in the May Monetary Policy Statement. A larger number of Shadow Board members viewed an OCR increase of 25 basis points to 5.50 percent is warranted, given domestic inflation pressures remain high and the upside risk to inflation due to the weather events earlier this year. The rest of the Shadow Board members recommend the Reserve Bank should keep the OCR at 5.25 percent. One member highlighted that household inflation expectations are already heading in the right direction, and monetary policy takes time to have ... (full story)