Shadow Board calls for substantial tightening over the coming year

The Shadow Board is calling for a sharp increase in the official cash rate (OCR) over the coming year in the face of intensifying inflation pressures. There was an overwhelming call for the OCR to be increased by 25 basis points to 1 percent at the upcoming meeting, with some appetite for a 50 basis points OCR increase. Beyond the February meeting, there was a wider range in views of how high the OCR needs to go in twelve months’ time.