Written By: - Date published: 1:03 pm, August 19th, 2011 - 50 comments
I came across this blog called Howdaft written by Darkhorse recently. It consists of five posts written in June. Five of the best pieces of leftwing economic thinking you’ll see anywhere – something we’ve been short on recently. I’ve tried to contact Darkhorse, but no luck. If you’re out there, drop us a line. In the mean time, here’s one of the posts.
Written By: - Date published: 11:15 pm, June 24th, 2010 - 42 comments
Unique in the world, we task our Reserve Bank with only one goal – keeping inflation in the target range – and give it one blunt tool to achieve it. Adding other objectives would bring us into line with other countries and giving the Bank better tools is long overdue. We need a smarter, more sophisticated approach to monetary policy. It is great to see the Left pushing for it.
Written By: - Date published: 12:43 pm, January 29th, 2009 - 5 comments
Another review of the Official Cash Rate, another record cut. This time, it’s a 1.5% cut bringing the OCR to 3.5%. That’s the lowest rate since the OCR was introduced in 1999. Good news for those with floating rate mortgages (not so good for the 80% of mortgagees with a fixed rate) and an opportunity for me to feel …
Written By: - Date published: 10:05 am, December 4th, 2008 - 13 comments
The Reserve Bank has cut 1.5% off the official cash rate, bringing it down to 5%. The rate has now been cut 2.5% in just six weeks, an unprecendented slashing. Mortgage rates will drop as well, but perhaps not by as much because the banks (excluding Kiwibank) have to borrow most of their money from …
Written By: - Date published: 9:02 am, October 23rd, 2008 - 30 comments
The OCR is down from 7.5% to 6.5%. That’s an unprecendented cut in one go and further confirmation that we are entering tough economic times. Inflation has been high but the Reserve Bank thinks the increasingly likely global recession will remove inflationary pressure. Keeping the economy going will be the challenge.
Written By: - Date published: 1:18 pm, October 21st, 2008 - 20 comments
Inflation hit 5.1% for the year to September driven by the mammoth spike in oil, food, and other commodity which has abated since then, for now. There is nothing that could be done to avoid this impact on New Zealand from international markets. The economy is already in recession, and now would be the worst …
Written By: - Date published: 10:52 am, July 24th, 2008 - 18 comments
The Reserve Bank has dropped the Official Cash Rate from 8.25% to 8%. Inflation is well outside the Bank’s 1-3% target range but there appears to be a recognition that there’s no point strangling our economy with high interest rates when that can’t bring down international oil and food prices. Don’t expect mortgage rates to …
Written By: - Date published: 12:27 pm, July 15th, 2008 - 17 comments
Inflation was 1.6% in the last quarter, 4% annually, the highest in 13 years. Petrol is driving inflation. By itself petrol accounted for a 1.2% increase. Food is the other big increase, also accounting for a 1.2% and that is itself being driven by international oil prices. The price of oil is beyond our control …
Written By: - Date published: 11:37 am, June 5th, 2008 - 13 comments
The Reserve Bank has left the Official Cash Rate unchanged; no-one expected a rate cut this early. It’s encouraging that Bollard has firmly signalled that interest rates will be coming down this year despite projected inflation reaching 4.7% in the September Quarter. There’s no use in the Reserve Bank strangling our economy with high interest …
Written By: - Date published: 12:30 pm, May 19th, 2008 - 72 comments
Discovering National’s policy is a bit like the old art of Kremlinology, when Western intelligence agencies would attempt to discover the inner workings of Soviet politics by looking at who stood next to whom in pictures, and what hand politburo members carried their briefcases in. The latest subtle signs from National regarding its tax policy …
Written By: - Date published: 1:59 pm, May 16th, 2008 - 23 comments
The economy is clearly slowing. Fundamentally, it remains strong with high employment, good wages rises, and strong prices for our exports but employment and retail spending both declined in the first quarter of this year, the housing market is flat, and there is a danger that if the Reserve Bank keeps its foot on our …
Written By: - Date published: 2:34 pm, May 2nd, 2008 - 29 comments
Today, ANZ and National Bank announced they are lifting their variable mortgage rates another quarter of a percent to 10.95%. That comes a week after the two banks, which are jointly owned, announced a net profit of $520 million in six months, up 7% on the previous period. Yesterday, Westpac announced a $244 million profit, …
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