A review of things you need to know before you sign off on Friday; few more retail rate rises, retailers report tough winter conditions, wholesale rates rise very sharply, NZD slips, & more

What's the point? 25 bp will do absolutely nothing now. They had a chance to drive a stake into the heart of Inflation at the last call, by changing the CPI big figure to a phycological 6, and (for whatever reason) didn't. "Higher for Shorter" in other words. Now we'll get Higher for Longer. (e.g. And so it goes on - "Midwives to get 15% pay rise")

Besides, there's an election due in a few weeks time, and there should be some sort of amnesty by the RBNZ in the name of fairness.

Great link from CN on another article today. https://www.stuff.co.nz/national/politics/300238808/reserve-bank-govern… . Many didnt listen thou.

As is often the case, the NZX50 waits until David has put his typewriter and twink away, and stages a late rally; heading for a small weekly gain.

Edit: In fact from a 0.5% weekly loss to a 0.5% gain.

Why ? There are a lot of crappy AUS stocks that are funded by cheap credit that will soon go bust, yes, that is true, but there are many proper stocks that will be reporting good profits next week, and some will surge as a result. But overall you could be right. If you are invested in this crap (much like housing here), you are in trouble.

Behold, the Prophet spake of rates 10%+ guaranteed, and Lo, we would not listen.

And the Prophet presented scrolls of evil portent, but still we would not read.

The Prophet shall return, tho we are not worthy.

Yep. Dumb and Dumber. Is that the total spend or the amount spent on the kits we never used? 60% of which were duds anyway. I do wonder how many of the kits that actually were passed out were ever used at all. I know I went through the airport coming in and got the compulsory kits that I supposedly had to use on day 1 and day 3 or something. On each occasion, they went straight in the bin outside customs on the way out. So, the total waste is going to be massive. Chump change though when compared to the total destruction of the economy and society though. But, they saved 80,000, aren't they great.

$410 million Rat rest less  $26 mil  (flag referendum) - South Canterbury Finance bail out $1.6 Bil , sorry who is the fuck wit? 

Been reading some American travel forums,where they are discussing certificates and tests still required to attend even small functions.

Fact is we did really well, maybe through good luck as well as good management, but it was certainly possible we would have needed that many tests. Imagine the howls if they weren't available.

Paywalled

Just as the deflationary forces of the past 10 years were in part caused by reduced costs (e.g. falling interest expense costs on the balance sheets of households and businesses didn't put pressues on prices and wages to balance cash flows going in and out of households and businesses).

Reserve Banks: "We are trying to create inflation by reducing everyone's cost of debt (interest rates) and as a by product create debt/asset bubbles!"

IO thinking: "well raise interest rates and you will create inflation" (by increasing household and business debt/interest expense, forcing wages/price higher while simultaneously avoiding the issues caused by debt/asset bubbles).

One of my arguments is that for the last 10 years, we should have been raising interest rates, not dropping them. Risk was increasing as debt to income ratios exploded across many number of metrics/areas, and the laws of finance (risk/return) say that in this instance, the required return should be increasing, not decreasing for debt exposed to that risk.

But our central banks did the exact opposite of what the laws of finance demanded.

Rising costs must be part of it.

But also, there are folks who have been gifted wealth through monetary policy, and are happily spending it on EVs and travel.  I suppose rising rates may convince some to TD it instead, for a while.

If you want to know what rampant Inflation might look like, just drop interest rates and you'll see.

We actually had it last time we dropped them - après GFC - but we chose to ignore it and call it Capital Gains, instead.

Government have raised fuel, transport, RUC etc. but with tax revenue falling they'll need to find some more taxes to raise and spending to cut to get to a 30% debt to GDP ratio.

US housing never reached the silly multiples New Zealand housing was allowed to reach though.

The trend on his graphs suggests we are near the bottom.  Shame, not even back to pre covid prices yet, let alone 3 times median affordable.

Makes so much sense... without land sales they cannot make coupons