Mr Key said New Zealand had a significant advantage over other countries because official cash rates set by the Reserve Bank were high. “If that weaker scenario is anything like what it could be, then you will see significant rate cuts in New Zealand.”
Oh Christ. It was bad enough when he was trying to direct the Reserve Bank as Opposition Leader but to be making comments like this when he is, in effect, Prime Minister is beyond the Pale. Does this guy not understand that our constitutional set-up gives independence from political interference to the Reserve Bank or does he just not care?
Of course, while the erosion of our constitutional separation of powers is one thing to worry about, a more serious issue, in terms of everyday impact, is where National/Act is going to cut the billions it needs to keep the budget from blowing out while still giving tax cuts to the rich. There’s only a few programmes big enough to cut billions out of them – health, education, Working for Families, benefits, Super, and the Cullen Fund. Where will the National/Act cleaver slice?
[turns out we’ve always used the term PM-elect, thanks mysterious stranger]