Division over OCR cut and problems with RBNZ

More than half board members say a 25 basis-point drop is needed now, given continued slowing in the economy and the labour market, and annual CPI inflation nearing the 1- 3% inflation target band.

The rest say the Reserve Bank should keep the OCR at 5.50%. One member considers there is still not enough evidence from the economic data indicators to justify a cut now.

There is an overwhelming consensus that an easing cycle should start soon.

Several members say the RBNZ should take a forward-looking approach to weakening economic conditions and ease the OCR at the next meeting, if not tomorrow.