The Reserve Bank may have left the OCR unchanged – due to a more upbeat economic assessment – this morning, but economists continue to expect a further cut to come. Prior to this morning’s monetary policy statement (MPS), commentator expectations had largely changed from a June cut to a preference for a cut in August instead. For this reason, Governor Graeme Wheeler’s announcement today that the OCR would remain at the already record low of 2.25% took few economists by surprise. Westpac chief economist Dominick Stephens said the Reserve Bank’s decision was very much in line with his expectations. In the MPS, the Reserve Bank sounds more constructive on the … Continue reading Financial stability reason for unchanged OCR