Economist argues against early OCR increase
Monday, August 8th 2011, 10:34AM
There are no rate changes to report this morning, and we are still watching to see whether ASB reverses its increases it made last week.
Some of the bank economists are barking for early hikes to the OCR following the comments made by Reserve Bank governor Alan Bollard, however one who isn't is Rodney Dickens.
"A balanced consideration of NZ economic growth prospects, international economic growth prospects and the medium-term inflation outlook suggests that there is no need for urgency in delivering the first OCR hike," he says.
In this piece he critiques the calls for early OCR hikes and provides some of the more balanced assessment of economic growth and inflation prospects that suggests Bollard shouldn’t be panicked into delivering early OCR hikes unless he wants to impose unnecessary pain.
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