The Reserve Bank isn't expected to change its course, despite inflation remaining higher for longer. 

Stats NZ is providing its latest CPI update at 10.45am. 

Economists expect the inflation rate to remain about 3% – the very upper end of the Reserve Bank's target range. 

That's higher than forecast, reflecting a higher-than-expected rise in travel costs. 

ASB Senior Economist Mark Smith told Mike Hosking it’s a little too soon to be thinking about hikes to the OCR, which is likely to be conditional on inflation. 

He says the Reserve Bank likely feels that there’s still a bit of spare capacity in the economy, and that should be sufficient to push down domestic inflation, which should contribute to overall inflation going closer to 2%.  

LISTEN ABOVE 

The Reserve Bank isn't expected to change its course, despite inflation remaining higher for longer.&nbsp;
Stats NZ is providing its latest CPI update at 10.45am.&nbsp;
Economists expect the inflation rate to remain about 3% – the very upper end of the Reserve Bank's target range.&nbsp;
That's higher than forecast, reflecting a higher-than-expected rise in travel costs.&nbsp;
ASB Senior Economist Mark Smith told Mike Hosking it’s a little too soon to be thinking about hikes to the OCR, which is likely to be conditional on inflation.&nbsp;
He says the Reserve Bank likely feels that there’s still a bit of spare capacity in the economy, and that should be sufficient to push down domestic inflation, which should contribute to overall inflation going closer to 2%. &nbsp;
LISTEN ABOVE&nbsp;

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.

Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.

The sharpest voice and mind in the business, Mike drives strong opinion,...

The Mike Hosking Breakfast

Mark Smith: ASB Senior Economist ahead of the inflation rate announcement for Q4

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/0aceae4e-cd21-48ab-8103-b3da0146640e/transcript