PHOTO: ROBERT KITCHIN/STUFF – Reserve Bank Governor Adrian Orr delivering his first press conference at the Reserve Bank in May.
A sharp fall in business confidence comes at a time when inflation may be strengthening, complicating the Reserve Bank’s outlook for interest rates.
On Thursday Reserve Bank Adrian Orr is widely expected to leave the official cash rate (OCR) on hold and is unlikely to signal that the benchmark rate will change any time soon.
But attention will focus on Orr’s statements on the economic picture and whether he will acknowledge the outlook is weaker than it was three months ago.
At his first press conference since taking the role, Orr said the Reserve Bank was in something of a “sweet spot” with employment strong and inflation low, meaning there was an equal chance that the next move in interest rates could be up or down.
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