Is the Reserve Bank raising the Official Cash Rate too far, too fast?

The central bank has lifted the OCR by an unprecedented 75 basis-points to 4.25 percent and is forecasting the country could be in recession by the middle of next year.

It's also warning the OCR may have to peak as high as 5.5 percent to bring inflation under control.

But Jarden Investment Strategist and Economist John Carran told Mike Hosking international inflation pressures appear to be starting to ease.

He says there are real signs global inflation pressures are starting to ease, with shipping costs coming off and oil prices coming down.

LISTEN ABOVE

Is the Reserve Bank raising the Official Cash Rate too far, too fast?
The central bank has lifted the OCR by an unprecedented 75 basis-points to 4.25 percent and is forecasting the country could be in recession by the middle of next year.
It's also warning the OCR may have to peak as high as 5.5 percent to bring inflation under control.
But Jarden Investment Strategist and Economist John Carran told Mike Hosking international inflation pressures appear to be starting to ease.
He says there are real signs global inflation pressures are starting to ease, with shipping costs coming off and oil prices coming down.
LISTEN ABOVE

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.