"Still-fragile global picture": Reserve Bank Governor unpacks decision to hold OCR

The Reserve Bank is keeping a close eye on several factors as it weighs up whether to hike the Official Cash Rate before Christmas. 

The Monetary Policy Committee voted, four votes to three, to hold the cash rate yesterday. 

The shock decision has had an immediate impact on exchange rates, with the already weak Kiwi dollar seeing its biggest drop against the Aussie in almost a decade. 

Governor Anna Breman told Mike Hosking they're monitoring both weak household consumption here at home and uncertainty abroad. 

She says the geopolitical tensions are high, fuel prices are volatile, many countries have high debt levels, France is facing widespread protests, and there are risks from the AI investment boom. 

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