Squirrel CEO calls on the Reserve Bank to start cut OCR
The Reserve Bank needs to cut the Official Cash Rate by 0.25% today, and signal the start of a gradual easing cycle.
There is near-unanimous expectations that the OCR will be left unchanged.
Nevertheless, there is a real lack of alternative views being expressed, with most commentary focused on what the Reserve Bank will do, rather than what it should do.
Monetary policy changes have a one to two-year lag before they flow through to the economy, due to the popularity of fixed-rate home loans in New Zealand. So, today’s OCR changes will only really impact inflation outcomes in 2025 and 2026.
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