Live-streamed video from the RBNZ press conference with Governor Graeme Wheeler.
This presentation started at 9:00 am.
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Links to the Decision and the Monetary Policy Statement are here.
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Bring on the mortgages sales! Seen two in my neighbourhood already
Well.
If someone can't manage a small interest rate rise they have too much debt.
Hopefully people get good advice and recognise this, then either fix or sell up.
Current inflation in NZ is mostly caused by external $ flowing into NZ's various sectors.
A OCR hike will be most like to attract more external $ while damaging domestic economic activities which hardly recover.
What sectors in particular are the biggest factors do you think ?
Try loose change flooding into the Auckland housing, land banks and commercial/ retail areas.
It may be loose change but at the rate it is arriving, it adds up to a big amount.
Read Barfoots on resdiential and Bayleys hiking commercial.
My question is "What use is this type of investing to NZ Inc and to the citizens of our country ?"
Maybe Winston is right and maybe he deserves his 5% at election time.
The basket used for headline CPI does not include land, nor does it include second hand property.
So Wheeler is flying blind and ignoring much of the cause.
Take away the Chch rebuild as a one off and unmeasured Auckland housing problem.
What is left?
Oh ,right,.... the milk bonus.
Bring on Crusher to help. She knows one or two things about milk.
No he is not flying blind.
He understands what the headline CPI is telling him, but more importantly what it is not.
Some people keep complaining about why rates need to go up when "inflation is only 1.6%"
They don't fully understand the data behind that figure.
And most importantly Spottie, he knows that what he does now won't impact inflation for 12-18mths. Fortunately he isn't as dumb as some here, he knows if he does nothing now, and inflation's above 2% by then and heading higher, 5.5% won't be the top of this cycle, something way higher, and quicker to get there, will be. He must get so frustrated with the idiots, many of whom are the ones likely to be in a situation to be the most hurt by that misjudgement...you can add an least one economist into that list as well, the one that the lefties love to use to suppoort their inane arguments.
Well said Grant A.
Yes, some posters here are much like spoilt children in the playground.
Even resorting to calling people 'funny' names.
A bit sad really.
Like you, I am happy to have a steadying influence at the Bank.
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