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Economy Matters
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Making sense of the OCR

ANALYSIS: Is it too little, too late? The free-market economist in me says yes, although the RBNZ probably begs to differ.

NBR columnist Christoph Schumacher speaks with Jonathan Mitchell.

On Wednesday, the Reserve Bank increased the Official Cash Rate (OCR) by 0.75 percentage points (pp) to 4.25%. This isn’t surprising given that inflation has reached a 30-year high of 7.2%, but is it too little too late? 

Think of the OCR as the cost of money. So, if prices increase too quickly,

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Christoph Schumacher Mon, 28 Nov 2022
News tip? Question? Typo? Let us know: editor@nbr.co.nz
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Making sense of the OCR
Economy Matters,
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