Karen Silk: Reserve Bank Assistant Governor talks domestic inflation, OCR cuts

The Mike Hosking Breakfast - A podcast by Newstalk ZB - Thursdays

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.  LISTEN ABOVE See omnystudio.com/listener for privacy information.