In a predictable move, the OCR remained unchanged. 

Yesterday the Reserve Bank announced it would continue to be held at 5.5% and are hinting headline inflation could return to its 3% target in a matter of months. 

Former Reserve Bank Economist Michael Reddell told Andrew Dickens that the statement was a shift in the right direction. 

He said that it was very different in tone from the one they made six weeks ago, in which they had mentioned possible rate hikes later this year and not beginning to cut until August of next year. 

It’s all over the place, he said, but shifting in the right direction. 

LISTEN ABOVE 

• Reserve Bank keeps OCR on hold but expectations rise for earlier cut
• Reserve Bank announcement signals market shift - experts