Parts of our economy are continuing to provide inflation pressures for the Reserve Bank

It's decided to keep the OCR at 5.5 percent and has signalled a rate cut no sooner than the second quarter of next year.

ASB Chief Economist Nick Tuffley says the Reserve Bank is expecting inflation to fall into the one to three percent band, before the end of the year.

He says some sectors of the economy aren't being tamped down by interest rates.

Tuffley says that includes council rates, rents and insurance costs.