Perspective with Heather du Plessis-Allan: Here's why holding the OCR in place was the right move
It is fair to say the overwhelming reaction to the Reserve Bank's decision to hold the OCR was surprise and, in some cases, shock.
Everyone thought the Reserve Bank would raise the OCR. ASB says it was 95 percent priced in. Even economists who believed the OCR should be held, so as not to kill the nascent recovery, were on record saying they thought the Reserve Bank would do it anyway. They expected it to make the wrong call and hike.
And yet it didn't.
It held the Official Cash Rate.
Now let me tell you why that was the right thing to do.
Yes, inflation is at 3.7 percent, which is well…
The skinny
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