A cloud of global uncertainty continues to hang over New Zealand

The Reserve Bank's signalling yesterday's double cut to the OCR will be followed up with two single cuts.

It's expecting inflation to remain within target, and expecting the economy to gradually recover.

But Adrian Orr says there's still a risk of stagflation -- the combination of higher inflation, lower economic growth and higher unemployment.

He says inflation has come down and is contained, but growth is slow, and we're going to wear any significant increase in global inflation.