A former Reserve Bank economist says there's a case for the Reserve Bank cutting the Official Cash Rate by 75 basis points.
The Reserve Bank will release its latest decision today.
It's widely expected to cut the rate by 50-basis points from 4.75% to 4.25%.
Former reserve bank economist Michael Reddell told Mike Hosking the Reserve Bank's view of an OCR of 2.5-3% as being neutral is the best guess.
He says we genuinely won't know until after we've got there and seen the inflationary consequences, but he thinks we will be at that figure by next August.
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