Sharon Zollner: ANZ Chief Economist on the OCR likely being cut by 50 basis points

Economists are very confident in a 50-point cut to the Official Cash Rate today.  The Reserve Bank is expected to drop the OCR from its current 4.25% to 3.75% at 2pm.  That would follow a 50-basis point cut at the bank's last meeting in November.  ANZ Chief Economist Sharon Zollner told Andrew Dickens the data has fallen in line with the Reserve Bank’s forecasts. He says it’s reasonable for the Reserve Bank to expect domestic inflation will continue to fall, and while they don’t want to cause unnecessary pain, they also don’t want inflation to leave the bottom of the band.  Zollner says that’s why they’re comfortable cutting now.  LISTEN ABOVE See omnystudio.com/listener for privacy information.