Shadow Board recommends the Reserve Bank pause OCR cut in July

A majority of members in the NZIER Monetary Policy Shadow Board recommend that the Reserve Bank of New Zealand (RBNZ) keep the OCR on hold at 3.25 percent in the upcoming July Monetary Policy Review. While activity remains soft in the New Zealand economy, there are both upside and downside risks to inflation in the near term, given the recent pick-up in annual CPI inflation and heightened global risks. Considering these factors, several members viewed it appropriate for the RBNZ to pause cutting the OCR in July.