Signs inflation is starting to ease, despite the impact of Cyclone Gabrielle.

The Reserve Bank has opted to raise the Official Cash Rate by 50 basis points, to 4.75 percent, as it continues to try to stem the high inflation rate.

Governor Adrian Orr says the cyclone may lead to some price rises in affected regions.

But he told Mike Hosking there's no reason it should cause widespread national inflation.

“As long as they don’t feed into aggregate expectations, that everyone thinks ‘oh this is inflation continuing and I’d better raise ice cream prices in Invercargill because Hawke’s Bay is rebuilding’ that’s the concern we have.”

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Signs inflation is starting to ease, despite the impact of Cyclone Gabrielle.
The Reserve Bank has opted to raise the Official Cash Rate by 50 basis points, to 4.75 percent, as it continues to try to stem the high inflation rate.
Governor Adrian Orr says the cyclone may lead to some price rises in affected regions.
But he told Mike Hosking there's no reason it should cause widespread national inflation.
“As long as they don’t feed into aggregate expectations, that everyone thinks ‘oh this is inflation continuing and I’d better raise ice cream prices in Invercargill because Hawke’s Bay is rebuilding’ that’s the concern we have.”
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Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.