Mike Jones: BNZ Chief Economist on inflation tracking lower than expected, possible OCR cuts

Another cut to the Official Cash Rate next month is looking a lot more likely. 

Latest Stats NZ figures show annual inflation has reached 2.7% in the year to June – up from 2.5% in the year to March. 

But core inflation is tracking much lower, and domestically driven non-tradeable inflation is at a four-year low. 

BNZ Chief Economist Mike Jones told Mike Hosking that it’s a green light for the Reserve Bank. 

He says the chance of not only reaching 3% in annual inflation, but also getting stuck above 3% has reduced, so the bank can probably feel more comfortably in cutting rates. 

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