Explosive GDP highlights how Orr will be forced to raise OCR 100points in February

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Today’s explosive GDP numbers shows what a juiced economy opening its borders to hyper tourism can do.

Our economy is a junkie on a meth bender.

The strength of the NZ economy, on top of the Feds comments on continuing lifting interest rates and going higher than previously predicted alongside strong Australian job market data are all pointing towards Orr having no choice but a 100 point rise in February.

Our strung out meth addicted come down economy is going to get very severe next year with house prices picked to now drop 30% and floating mortgages topping 10%.

Merry Christmas.

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7 COMMENTS

  1. One assumes the tax take is also stupendous, equally, which brings me to Grant Robertson who is increasingly out of touch and in lala land.

    Grant says the government cannot continue to “subsidise” fuel costs! As stated by a chauffeur driven man with no cost of living skin in the game.

    Grant, fuel in this country is massively over taxed to the point where it is breaking people just trying to get to work. Tax reduction is NOT a subsidy, it’s a tax cut. Its a cut in unnecessary government backed extortion.

    If Robertson wants to complete Labours demise AND his political career next year in one foul swoop, then put the greedy tax back on the people of this country mid recession and deep into the cost of living crisis! See what happens!

      • We’d certainly be living in a very different society if we took all the petrol / diesel powered vehicles off the road, whilst not having an adequate alternative.

        Though at least in previous dark ages, most people lived within walking distance of their work, many grew their own food and there were horses & oxen for the heavy stuff or longer distances. No hour long commutes or relying on supermarkets for food then.

        The price of fuel means little to the affluent, but to the poor, it may mean the difference between being unable to get to work or take the kids to school. The choice between fuel or food.

  2. The problem is that those who make policies, are part of a demographic that would not be affected by the consequence of those policies. They don’t sit for hours in traffic, they don’t wait for seven hours at hospitals, choose between paying the rent or having a healthy meal and so on…

  3. Agree XRAY it is the reinstatement of a tax and not the removal of a subsidy and to frame it any other way is dishonest. Robertson & Orr have been very late to realise how much damage they were doing by over stimulating the economy. Grocery price inflation is now running at 10.8%. Gvt are creaming it through a high tax tax take on thresholds that have not been indexed for inflation. Nearly everyone has much less spending power under Labour. The no brainer should be to retain the lower level of fuel tax and reduce poor quality Government spending to address inflation. Robertson is addicted to spending (and borrowing) to such a degree that it now acknowledged that this is part of our inflation problem which is causing pain for households. He claims that he has and will further slow spending but this has been done reluctantly and belatedly. I can’t see him doing anything but offering “bribes” in election year in an attempt to prop up Labour’s 2023 vote. His behaviour smacks of working for the good of the Labour Party and not the good of the people. IMO Robbo you have been a terrible finance minister and have contributed a couple of clicks to NZ’s inflation rate through poor decision making.

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