It’s being predicted that interest rates won't be going down for some time.
Despite inflation in line with expectations of 4.7%, non-tradable inflation is still high at 5.9%.
The Reserve Bank is also contending with slow employment growth, weaker business investment, and weaker global growth.
Former Finance Minister Steven Joyce told Mike Hosking that ongoing struggles with non-tradable inflation will keep interest rates higher for longer.
He says they might change interest rates earlier in the year, but if they do, the risk is they'll have to reverse course as the year goes on.
Reserve Bank Chief Economist Paul Conway will deliver a keynote speech on the economy this morning.
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