Jarrod Kerr: Kiwibank Chief Economist says they think the Reserve Bank should hold off on hiking interest rates

Kiwibank is warning the Reserve Bank against hiking interest rates. 

It's picking a 25 basis point increase to the Official Cash Rate, bringing it to 2.75%, then 3% later this year. 

But with unemployment up, wage growth around 2%, and weak housing, it argues rates should stay put. 

Chief Economist Jarrod Kerr told Mike Hosking we need the economy to recover, and rising rates don't help that. 

He says they understand the Reserve Bank is worried about the recent spike in inflation and want to be on the front foot, but they believe we should be more reactive.  

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