18 Aug 2021

Covid-19: How will lockdown affect OCR call?

From Morning Report, 8:55 am on 18 August 2021

Today, the Reserve Bank was all set to announce its decision on whether to lift its historically low official cash rate. The only point of disagreement among economists was whether it would be by twenty-five or fifty basis points from the current 0.25 percent rate. The lockdown appears to have thrown that calculation into disarray. Some econmists are now saying there may not be a hike at all. Can the central bank afford not to move? Or might any move it makes be imprudent at such a delicate national moment? ANZ's chief economist Sharon Zollner spoke to Corin Dann.