Nicola Willis: Finance Minister on the OCR being cut to 2.5%, potential inflation spikes

The Finance Minister says she's okay with a short spike in inflation.  The Reserve Bank has slashed the cash rate 50-basis-points to 2.5% and is leaving the door open to further cuts.  It expects inflation to reach or surpass 3% in the short term but believes the economy is weak enough to push inflation back down again next year.  Nicola Willis told Mike Hosking we won't see another long-period of sustained much-higher inflation.  She says a little blip's okay, but the three years of high inflation under the last government is not okay.  LISTEN ABOVE  The podcasts in the SME Stream contain general information only, not financial or professional advice. Any opinions expressed in the podcasts are not necessarily shared by BNZ, or its related entities. BNZ is not liable for any losses resulting from the content of the podcasts. See omnystudio.com/listener for privacy information.