Kiwibank believes there’s no need to increase the Official Cash Rate just yet. 

They believe the figure should be held at 2.25% when the Reserve Bank reviews it next week. 

Kiwibank Chief Economist Jarrod Kerr told Mike Hosking that oil prices were a temporary shock and some of the fears around secondary inflationary pressures haven’t eventuated. 

He told Mike Hosking that wages are still very soft and the economy is still recovering, so there’s no need to hike rates just yet.  

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