The Reserve Bank remains concerned about domestic inflation, as it points to more OCR cuts next year following the latest 50 basis point cut

Inflation is now at 2.2 percent -- with weak global demand pushing tradeable inflation down to minus 1.6 percent.

But non-tradeable inflation -- things like insurance, rates, power and rents -- remains at 4.9 percent.

But Reserve Bank Assistant Governor Karen Silk says that needs to be brought down to just under three-percent, which is where it's historically sat.

She says this type of inflation, which is less responsive to monetary policy, remains persistent.