Mark Wilkshire: The Co-operative Bank CEO on RBNZ keeps OCR at 2.25 percent

The Reserve Bank expects inflation to spike this quarter but says it's still too early to say by how much.

The central bank's opted to keep the Official Cash Rate unchanged at 2.25% for now.

It's forecasting inflation will surge to 4.2% in the June quarter but admits that forecast doesn't take into account the fall in fuel prices after yesterday's Iran ceasefire announcement.

The Co-operative Bank CEO Mark Wilkshire shares his thoughts with Ryan Bridge. 

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Episode Transcript

Speaker 1 (00:00):
So the ocr has been held steady at two point
twenty five percent RB and z's inflational peak at four
point two percent this quarter. Though, you know, it's like
penning a tail on donkey with estimates. At the moment,
markets thought the announcement was a bit more hawkish than
they expected. Kiwi dollar rallied a quarter of the US
sent to fifty eight point one eight In response. Mark
Wiltshire is the Cooperative Bank CEO, joins us this morning.

Speaker 2 (00:21):
Hey Mark, good morning, Rahan.

Speaker 1 (00:23):
What did you make at the statement yesterday from the bank?

Speaker 2 (00:27):
I think on the reserve banks did a very difficult
job right now. So I think we've had a very
good job just basically having a very balanced view highlighting
some of those risks that they might need to take action.
So the markets, as you said, just did react a
bit saying that's a bit of a tone saying they
will respond to inflation if that bersis into the medium term.
What's happening on you on the whole?

Speaker 1 (00:48):
Yeah, on the balance, on the whole balanced and on
the whole sensible, which is good. It's what you want
from a reserve bank, right What about your rates? How
they have you increased them by how much and will
you in the future.

Speaker 2 (01:01):
Well, the floating rates on hold, so we've got one
of the lowest floating rates out there at four ninety nine.
It's a fixed rates that are the one that's moving.
And so markets did up a little bit. I mean,
good news on the ceasefire in the Middle East, so
that certainly has helped markets. So that was actually a
positive effect, But it is, as you mentioned, it's quite

(01:22):
volatile right now. So I think the risks around those
fixed rates continue to move up, and the markets are
expecting more moves than the Reserve Bank at the moment,
So that's they're already coming forward from what was work
cast around December have now looking more like September for
those rises start coming through in the OCR here in

(01:44):
New Zealand. So that's that's the risks of those fixed
rates start to edge up more and that's the upper
pressure on those fixed rates.

Speaker 1 (01:51):
Mark, what about your customers are they're getting in touch
saying today right now it's a tough time, we need help.

Speaker 2 (01:58):
We're not seeing a lot of that in the consumer
retail market, Ryan, the I mean, it is a tough
time right now, but I think basically people are managing
through this. At the moment, we're not really seeing too
many advers and packs. I mean, it is a concern
I think for people this level of volatility, but people
are okay at the moment, and I think the rates
have been low so that's helped. So people have been

(02:20):
had to have some resilience out there. But you're keeping
a close eye on that and keeping in touch with
our customers to make sure they continue to manage themselves well.

Speaker 1 (02:28):
Mark, appreciate your time this morning. Thanks for being with me,
Mark Bookshare Coopertive Banks CEO.

Speaker 2 (02:33):
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