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