CPI puts pressure on
But they say it’s likely to wait until March, when it will have the chance to fully explain its reasons behind its first hike.
There was a 0.1% increase in CPI in the fourth quarter of 2013, well ahead of the drop of 0.2% to 0.3% that most economists had been predicted. Annual inflation rose from 1.4% to 1.6%.
Westpac chief economist Dominick Stephens said it was the second quarter in a row that the quarterly CPI figures had exceeded Reserve Bank forecasts.
He said he still thought the OCR first rise would come in March but next week’s review was now not as sure a bet as it had been – especially as the dollar is providing less of a dampening effect than it was and housing-related pressure is not showing much sign of easing yet.
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