NZIER’s Monetary Policy Shadow Board’s recommendation to the Reserve Bank is broadly unchanged from the previous meeting in May. The Shadow Board again recommends the Reserve Bank leave the Official Cash Rate on hold this Thursday at 1.75 percent, with a tightening bias. “The New Zealand economic outlook remains positive, and annual inflation lifted to 2.2 percent for the year to March. While higher food and fuel prices have largely driven the recent pick-up in inflation, and may be transitory only, there are also signs that underlying inflation is continuing to lift.” said Christina Leung, Senior Economist at NZIER. ... (full story)