OCR cut but warnings about inflation, unemployment
RNZ
A cut to the official cash rate, but warnings about the strength of the economy from the Reserve Bank yesterday. The Central Bank committee cut the OCR by 25 basis points, or a quarter of a per cent, to 3.25 percent. The committe voted 5 to 1 for the cut. Its accompanying statement predicts more jobs in time, but that in the short term the labour market will remain weak and inflation will rise.
Kathryn speaks with BNZ's head of research, Stephen Toplis.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
2 hours ago
- RNZ News
Pacific Waves for 2 August 2025
NZ in Cook Islands domestic affairs 'improper' - Henry Puna; Paris agreement 'not enough' for Kanaks - Roch Wamytan; Pacific shoppers in NZ unhappy with locked up corned beef. Tags: To embed this content on your own webpage, cut and paste the following: See terms of use.
RNZ News
2 hours ago
- RNZ News
NZ in Cook Islands domestic affairs 'improper'
Pacific politics 19 minutes ago Former Cook Islands Prime Minister Henry Puna says he thinks it's "improper" for New Zealand to involve itself in the "domestic affairs" of the island nation and issues between the two countries should be resolved with leaders talking behind closed doors.
RNZ News
3 hours ago
- RNZ News
Luxon to tell National faithful country is 'turning the corner'
Luxon to tell National faithful "we're turning the corner" National leader Christopher Luxon. Photo: RNZ / Nick Monro National Party members are gathering in Christchurch to cap off a week in which MPs attempted to steer public minds back towards the government's cost of living policies. Members will also farewell a party stalwart, with former president Peter Goodfellow retiring from National's board of directors. While leader Christopher Luxon will be speaking to the converted, he will be acutely aware the cost of living has become front of mind . Earlier this week, he was asked what his message to the party faithful would be. "Look, they know it's been a tough time, they know that we're turning the corner," Luxon said. "But really ... this country's got great potential and a great future ahead of it, and we've just got to keep working at it." National's deputy leader, Nicola Willis, said the conference would be focused on the steps the government was taking to make the country "an easier, better place to do business, to hire people, to create well paying jobs". "It is our job as a government not to moan about the things we can't control, but to focus on how we can make things better here in New Zealand, and we're very proud of the efforts we're making," she said. It is a stark contrast to this time last year, where Luxon's message ahead of the first conference since National returned to government was its focus on action and delivery . It shows just how much the cost of living crisis is lingering, and National has spent the week attempting to convince the public it has got it under control. With no announcement to make at this week's post-Cabinet press conference (bar the card surcharge ban, which had already been announced), Luxon and Willis gave a more than 10-minute address about the economy and cost of living, and actions the government had taken. "The most important thing we can do to make you better off is to double-down on our long-term economic plan," Luxon said. Willis used her speech to remind people of National's tax changes, FamilyBoost policy and a falling Official Cash Rate. It prompted Labour to accuse the government of "more spin than a front-load washing machine" . The latest Ipsos Issues Monitor has Labour in front of National as the party New Zealanders consider most able to handle the cost of living, despite releasing no substantive policy since the election. In 2023, National won 38.06 percent of the party vote, but since then has failed to poll above that. Recent polls have had National in the low thirties, with some showing the left bloc would have enough numbers to form a government. Other polls give the coalition the numbers to form a government, but only just. National party ministers will hold panels on health, education, law and order, agriculture, and the economy and cost of living. Members will also elect board positions. Long-serving board member and former party president Peter Goodfellow will be retiring from the board. Goodfellow was president from 2009 to 2022 before stepping down but remaining on the board. ANZCO Foods founder Sir Graeme Harrison, who joined the National board in 2021, has also decided to retire. Current board member Rachel Bird is up for re-election. Under National's constitution and rules, board members serve three years and then retire. They can then be eligible for re-election. Craig Carr, Andrew von Dadelszen and Edgar Wilson have also put their names forward for the vacancies. Party president Sylvia Wood and board members Jannita Pilisi, Stefan Sunde and David Ryan are not up for re-election, and so will remain on the board. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
