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Shadow Board recommends the OCR should remain at 5.5 percent in August
Most Shadow Board members recommend that the Reserve Bank keep the Official Cash Rate (OCR) at 5.50 percent in the upcoming August Monetary Policy Statement. The impacts of previous interest rate increases are still flowing through to the household sector, which should help to reduce inflation pressures in the New Zealand economy. However, two members recommended a 25 basis-point increase in the OCR in August. They were concerned about the stickiness of domestic inflation pressures and the continued increase in employment, which seems to suggest more work now is needed for the Reserve Bank to sufficiently bring ... (full story)