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Jarrod Kerr: Kiwibank Chief Economist warns that early OCR increases could be counterproductive
Published 1 week, 2 days ago
Description
There's division among economists regarding how soon the Reserve Bank should start raising the Official Cash Rate.
Many now expect the bank to bring forward OCR hikes, with ANZ forecasting three before the election.
But Kiwibank Chief Economist Jarrod Kerr warns that could be reckless and counterproductive.
He told Mike Hosking right now we're dealing with more temporary inflation due to higher diesel prices, which should hopefully fall back.
Kerr says more persistent forms of inflation, like wage and rental inflation, are quite benign at the moment.
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