An economics expert says cutting the Official Cash Rate is unwarranted.

The Reserve Bank is set to release its first 2025 OCR decision on Wednesday.

Many economists are predicting a 50 basis point cut - from 4.25 percent to 3.75.

Auckland University economics professor Robert MacCulloch says the bank's only meant to focus on inflation, which is already on target.

"They're not looking at the inflation rate - it's exactly at 2 percent. But they're panicking about the state of the economy, that's the truth. I think that's what's going on."

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An economics expert says cutting the Official Cash Rate is unwarranted.
The Reserve Bank is set to release its first 2025 OCR decision on Wednesday.
Many economists are predicting a 50 basis point cut - from 4.25 percent to 3.75.
Auckland University economics professor Robert MacCulloch says the bank's only meant to focus on inflation, which is already on target.
"They're not looking at the inflation rate - it's exactly at 2 percent. But they're panicking about the state of the economy, that's the truth. I think that's what's going on."
LISTEN ABOVE

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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.

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Robert MacCulloch: Auckland University economics professor warns against cutting the OCR

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/e721b911-f7e2-41a9-8507-b287005946f4/transcript