Kelly Eckhold: Westpac Chief Economist on the OCR figures set to be released today

Early Edition with Ryan Bridge

The Reserve Bank is expected to make a “short and sweet” announcement today.

Economists are expecting the OCR to remain untouched at 5.5%, as it has the last six times.

Westpac Chief Economist Kelly Eckhold told Ryan Bridge that the Reserve Bank said in May that interest rates would have to remain restrictive for a protracted period to get inflation down, so not much has changed for them.

While some banks are predicting a cut this year, Westpac is holding firm on their prediction of early next year.

Eckhold said that they don’t think that will change today, and while they’re all hoping there will be some interest rate relief soon, the reality is that inflation won't go away by itself.

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