Senior Econimist ahead of Reserve Banks decision on the Official Cash Rate

Author
Newstalk ZB,
Publish Date
Wed, 24 Nov 2021, 1:28PM
(Photo / File)
(Photo / File)

Senior Econimist ahead of Reserve Banks decision on the Official Cash Rate

Author
Newstalk ZB,
Publish Date
Wed, 24 Nov 2021, 1:28PM

Jamie Gray's piece in Monday's New Zealand Herald detailed what the Reserve Bank will do with the $55 billion in New Zealand Government bonds now Quantitative Easing is over. 

There seems to be consensus the Reserve Bank will increase the Official Cash Rate today - but the question is, by how much? 

Governor Adrian Orr will be making the announcement at 2pm, along with the Monetary Policy Statement. 

Senior Economist at Infometrics Brad Olsen joined Kerre McIvor and told her that we have a very hot economy at the moment. 

“We’ve got record high inflation and record low un-employment and we had economic activity over the first half of the year that grew at nearly double the pace the Reserve Bank thought.” 

He said things are a lot hotter than the Reserve Bank expected and they'll want to increase interest rates. 

LISTEN ABOVE