Inflation and central policy outlook for business

The latest Reserve Bank of New Zealand (RBNZ) increase of 0.25% in the Official Cash Rate (OCR) was lower than some had expected. In my conversation with Managing Director of Triple T Consulting, Sean Keane, he shared his outlook for inflation and perspective for global central bank policy.

New Zealand and Australia have tended to move through economic cycles together and that has often meant the RBNZ and Reserve Bank of Australia (RBA) have tended to move interest rates at the same time. However, at present the RBNZ is pointing to an aggressive tightening path whilst the RBA is indicating no change in the cash rate for possibly 3 years. Sean explained why there is so much divergence between the two central banks at the present time.

Watch the Sean Keane conversation with NZ Private Capital