The Reserve Bank remains concerned about domestic inflation as it points to more OCR cuts next year following the latest 50 basis point cut. 

Inflation is now at 2.2%, with weak global demand pushing tradeable inflation down to -1.6%. 

But non-tradeable inflation —things like insurance, rates, power and rents— remains at 4.9%. 

Reserve Bank Assistant Governor Karen Silk told Mike Hosking that needs to be brought down to just under 3%, which is where it's historically sat. 

She says this type of inflation, which is less responsive to monetary policy, remains persistent. 

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