Reserve Bank keeps OCR at 5.5%: ‘A shot across the bows’
The Reserve Bank has kept the official cash rate (OCR) at 5.5%, and pushed back strongly against a growing market perception that cuts could be to come before long.
It said, while higher interest rates were restricting spending and inflation was dropping, it was still too high, and the OCR will likely have to stay at current levels for some time.
If further inflationary pressure was seen, the bank said, the OCR could have to increase again.
Governor Adrian Orr faces a terrible dilemma, continue to punish mortgage holders or allow inflation to keep robbing everyone.
He has clearly popped any bubble by the market that the OCR would be coming down and in fact points to another possible hike and no cut until 2025!
The economy is in far worse shape than is being recognised and the new Government’s love affair with taking from the poor to give to Landlords will cause even larger costs…
Landlord tax breaks will blow out by $1b – Council of Trade Unions
The Government’s move to accelerate tax cuts for landlordsmeans a blowout of about a billion more dollars over four years, according to the Council of Trade Unions.
It could also mean landlords collecting a cheque from the Government, with no benefit to renters.
…the pain Orr is promising will only get more intense as the new Government lurches from one PR disaster to another.
The lack of being able to make any economic headway will force the Government to do stupid symbolic policy to sate their angry right wing electorate.
Increasingly having independent opinion in a mainstream media environment which mostly echo one another has become more important than ever, so if you value having an independent voice going into this pandemic and 2020 election – please donate here.
If you can’t contribute but want to help, please always feel free to share our blogs on social media.
Hard to imagine policy more stupid than their 100 day plan. To summarize the main points already summarized by the Herald.
Repeal. Repeal. Repeal. Repeal. Ban. Repeal. Dis-establish. Repeal. Repeal. Ban.
Hard to imagine policy more stupid than their 100 day plan. To summarize the main points already summarized by the Herald.
Repeal. Repeal. Repeal. Repeal. Ban. Repeal. Dis-establish. Repeal. Repeal. Ban.
The stupid policies came to an end with the election of National.Finally we can expect to see the economy moving in the right direction.Business confidence is up a has not been this high for years.Those that want to work hard to reap rewards are once again not being treated as the enemy. It is a sad situation when success is held against you
Pull the other one Trevor. You could just as easily say the ones that really do the work will be treated like the enemy. Don’t tell me landlords to a man/woman work as hard as those your heroes treat like they are the enemy. Luxon makes some bullshit link between fair pay agreements and low productivity. He’s a knob
Orr will give Luxon one up the arse next year when he raises rates by 1 % in one hit and another 1% later to show him whos in charge of the fucking economy
Orr is just following what his paymaster (US Fed Chairmen Jerome Powell) has told him to do. You don’t seriously think that this country can make independent monetary policy?
Comments are closed.