NZIER disclosed that its RBNZ Shadow Board is in disagreement over whether RBNZ should raise OCR the Official Cash Rate (OCR) this week. A “large number” of the Shadow Board members viewed a 25bps to 5.50% as “warranted”. But “the rest” recommended to hold at 5.25%.
This discord was extended to future projections, as NZIER noted a divergence of opinion regarding where OCR should stand in twelve months.
The Shadow Board acknowledged several recent economic developments that indicated a slowing pace in New Zealand economy, including weaker government tax revenue, decreased consumer spending, and ongoing declines in business profitability.
However, members also recognized potential inflation risks from rising net migration inflows and any new fiscal stimulus in the new Budget.
 this week. A "large number" of the Shadow Board members viewed a 25bps to 5.50% as "warranted". But "the rest" recommended to hold at 5.25%.){kind=link}