Surging global oil prices and bond yields could keep inflation higher than expected and force the Reserve Bank to raise the OCR faster than expected. 

Some economists now expect the Official Cash Rate to reach 4% before the end of the year. 

The Government says the Pre-election Economic and Fiscal Update —due out in two weeks— will try to reflect changes in borrowing costs. 

Infometrics Principal Economist Brad Olsen told Andrew Dickens further conflict in the Middle East is pushing up oil prices, as fears grow about an AI bubble burst. 

He says both of these things are happening, amidst mounting concerns about government debt. 

LISTEN ABOVE  

Surging global oil prices and bond yields could keep inflation higher than expected and force the Reserve Bank to raise the OCR faster than expected.&nbsp;
Some economists now expect the Official Cash Rate to reach 4% before the end of the year.&nbsp;
The Government says the Pre-election Economic and Fiscal Update —due out in two weeks— will try to reflect changes in borrowing costs.&nbsp;
Infometrics Principal Economist Brad Olsen told Andrew Dickens further conflict in the Middle East is pushing up oil prices, as fears grow about an AI bubble burst.&nbsp;
He says both of these things are happening, amidst mounting concerns about government debt.&nbsp;
LISTEN ABOVE &nbsp;

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

Early Edition with Ryan Bridge

Brad Olsen: Infometrics Principal Economist on how an uncertain global bond market could impact New Zealand

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/032c18e5-ab12-4334-a1d1-b4c501837a44/transcript