The NZIER Monetary Policy Shadow Board recommends that the Reserve Bank of New Zealand (RBNZ) increase the Official Cash Rate (OCR) at the upcoming October Monetary Policy Review, with the majority of the Shadow Board members recommending an OCR increase of 25 basis points. This reflects their view that renewed pressure on global energy prices and a recent weakening of the New Zealand dollar increase the upside risks to inflation, warranting another OCR hike now. On the other hand, several members considered that the central bank should allow the OCR increases to date to work through the New Zealand economy.
