Early Edition with Kate Hawkesby

Another half-percent on the OCR, which was harsher than most pundits had predicted and takes the cash rate to 5.25 percent. 11 hikes in a row now, yet inflation is still painfully high. The RBNZ says employment is also still beyond what's sustainable and it says recent weather events have pushed some prices even higher. The fact the economic pundits were caught off guard is more than a bit of a worry. ”No one saw this coming”...that's Imre Speizer at Westpac. Capital Economics is now picking a protracted recession, saying it'll be so sharp that rates will have to be cut again by the end of the year. The NZIER says capacity constraints are easing and now is not the time to be adding further interest rates increases it says. And on it goes. Point is; these guys do tend to be ahead of the curve with what they project. In the main, they're pretty good at weighing up exactly where we are now, rather than looking at where we were two or three months back and getting out the smoke and mirrors. And where we are now i