Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Keith Rankin On Interest Rake hike

The Acting Governor of the Reserve Bank, while once again raising the Official Cash Rate as an act of further tightening monetary policy (see www.scoop.co.nz/mason/stories/HL0207/S00014.htm), notes that ongoing increases are less likely than he had expected in May.

The suggestion is that short-term interest rates will stabilise at around 6 percent. The main reason given by Dr Carr for his less hawkish outlook was that the exchange rate had risen faster than the Reserve Bank had anticipated. The second reason given was the shaky international outlook.

This is the first monetary policy statement since the budget. Yet at no stage did Dr Carr suggest that the Minister of Finance's (Michael Cullen) overtly tight fiscal policy had anything to do with the softer tone of Dr Carr's media statement.

Remember that Dr Cullen had claimed that fiscal policy had to be tight to keep a lid on interest rates.

Yesterday's statement suggests that Cullen's harsh fiscal policy makes not a jot of difference to interest rates. My column last week on this topic can be found at: www.scoop.co.nz/mason/stories/HL0206/S00165.htm.

Ends


© Scoop Media

 
 
 
Top Scoops Headlines

 

Gordon Campbell: On Whether Trump Is Likely To Be Impeached

‘Tis the season to be jolly, and for wrapping a plea bargain under the Christmas tree for all ye formerly merry, Trump-connected gentlemen... More>>

Gordon Campbell: On The Brexit & Huawei Clusterfudges

Come December 2019, the West’s social democracies could be gone through quite a few changes at the top. More>>

ALSO:

UN Rights Declaration At 70: We Are All Born Free And Equal

On Article 1 of the UDHR: Dignity is the foundation of all human rights. Human beings have rights, and should be treated with utmost care, precisely because each one possesses intrinsic worth. More>>

ALSO:

Gordon Campbell: On The (Delayed) Judgment Day For Theresa May

When under stress, British PM Theresa May reportedly eats peanut butter straight from the jar. Crunch time is looming... More>>

ALSO:

Gordon Campbell: On Politely Fake Political Obituaries (And The Paris Discord)

One unfortunate side effect of “personality politics” is that when prominent politicians die, the niceties we observe at the death of private individuals get automatically extended to them as well... More>>

ALSO: