Wow, Orr was emotionally bullied by the Bank Pundits and lowered the OCR based on a belief inflation will drop more steeply than anytime since 1995 which is either heroic or a signal the Economy is in far worse shape that anyone has suspected.
It is also based on no extreme weather events or Geopolitical Shocks for the remainder of this year which agains seems extremely optimistic, as is too the argument that unemployment will now peak at 5.4.
There are so many heroic assumptions going with this OCR cut.
The biggest winner will be the Banks.
The Government will crow that this reduction has occurred because they have gotten the Economy back into shape by sacking 7000 public servants, kicking 50 000 off welfare and manufacturing a funding crisis in public health.
What a tiny victory for so much social carnage.
Fabulous to see the Coalition’s responsible policies being effective so soon.
Wonderful for New Zealand to be back on track.
Yes back on track for the banks.
Like you Bob Luxons not great with numbers, you are an embarrassment…
https://www.stuff.co.nz/politics/350378989/pm-christopher-luxons-second-fumble-benefit-numbers
Don’t bother trolling, you’ll only embarrass yourself further. People are laughing at you not with you.
Time to get inflation under control, it’s the only thing that matters.
You mean they have tanked the economy so fast it’s a celebration Bob? Good luck with that. They have made a complete mess of multiple issues and let’s face it, we are talking about a slowing of the rate of increase of what is still known as f’ing expensive. Sure that’s not all their doing at all, but it doesn’t change reality
Shall we regress, Nationalize, Power health and State.As it used to be.
There’s no reason that foreign bankers should be involved in our economy, for that matter.
Martyn – And Mortgage holders win as well.
all 33% of them – what about the other 67%? this sadistic cuck government don’t give a fuck about mortgage holders unless they’re landlords
I did see a pic of Luxon and his money dumping side kick .They were not looking too smug even though they are pretending they have the economy on the improve .The reality is that the economy is doing a major swan dive .Just look at the desperation of all the next generation of workers flock out the door at record levels .Then all the nurses that we are training will not get a job because health wants to sack 1500 of the 2500 they hired earlier .Expected unemployment of 5.4 % is a dream only a tosser would be having but a night mare for 200k people who will be unemployed or under employed .If the economy was recovering unemployment would be falling not expected to rise .Lower interest rates only boost the property market and nothing else as we have seen in the last couple of years .Interest rates should remain at the current level for the next five years .
I bet you do not have a mortgage
NZ is full of conservative sadist cucks who get off on watching their fellow countrymen and women getting fucked over.
Yep.
Does it matter Trevor?
Look to the detail of Gordons comment. I suspect you have no interest, just another Bob troll.
Born and bred kiwis know how the likes of you are clueless to a once proud nation off the back of hard work. Whilst record numbers see a brighter horizon in Australia, the scum are raping our country for all it’ worth and they have a sympathetic ear with this government.
How do you cope on 4 lane motorways Trev? You have such a sigle track mind you can’t even imagine the lie of the land off that track.
no I dont but when I did interest rates were not as low as they are now in the whole 20 years of that mortgage .7% is not high .And dont forget lower interest rates have a negative effect on people who save .Kiwi saver will be taking a hit as we speak .The sole focus on the house market has been the cause of a poor performing economy for 30 years .We have become lazy investers just putting money into unproductive housing and not investing in productive or new inovations .
Mortgage payments reduced, plus tax cuts.
Lots of people outside of the Wellington public service will be grateful.
Cool Ada, there goes the theory of governing for all New Zealanders, thank you for the admission.
…of all the bodies in the streets, burn’t out cars and boarded up windows.
If it had happened under Labour it would be seen as a great success story but it only took 10 months under National to happen.Those with mortgages will be pleased especially as it is on top of their tax break money.
Those with term deposits will say fuck you Trevor but hey you have always been an avid advocate for the great housing ponzi scheme. One day you’ll think of those outside your right wing John Key bubble.
As an aside Labour had interest rates 2.96 % 2021 so not sure skiting at 5 or 6 % is a winner but whatever rocks your right wing boat.
In 2021 Labour moves caused the start of the inflation spiral cause a heap of pain and eventually got them booted out of office
No, incorrect AGAIN Trevor, Trevorpo, TrevorpoBob.
In 2021 Labour improved the lives of every kiwi and a few imports like yourself. National has destroyed lives.
Wow Martyn you have fallen into the same trap as those I consider naive.
Orr is the Governor of the Reserve Bank.
The OCR is set by a committee I believe chaired by the Chair of the Bank who happens to be a National party appointee from the days of John Key.
This committee makes the decision and Orr or his designate is just the messenger.
For you to say Orr crumbles shows a lack of understanding.
To keep it simple, the relationship between Orr and the Board is similar to that of any Chief Executive and the Board of a Company.
Orr does not have designated authority to set the OCR.
This is absolutely a construct of the National party.
A work colleague has had her immigration residency costs increased by $2400 from September yet falls under the heading of skilled labour. The only conclusion for increased costs alongside Nationals country wide cuts is that they need to pay for the dumbest tax cuts in our political history. It will take a left wing government to correct the multiple failures of this horrendous government to undo the carnage National will leave behind. It happens every time we have a right wing government. Sadly with ACT and NZ First they have now lurched hard right and in Luxon we have an incompetent.
aND NO DOUBT THAT WORK COLLEAGUE WAS AT THE RECENT NATIONAL PARTY CONFERENCE .
Thankfully not as up until this horrendous government took over she had no interest in NZ politics. This has made her stand up and say fuck this government.
Not surprising as I think the economy is in very bad shape. I’m seeing it in various forms in my family and in businesses I deal with; extreme worries about debt and interest payments, layoffs, reduced work hours. Even with this little cut we’re going to see small businesses going to the wall.
don’t worry – Luxo will whip out his spreadsheet before the next election and show you all his ticks while you grind into the CBD on the train from Parramatta – maaaaate
Simply awful to see the Coalition’s irresponsible policies so destructive so soon.
Sad for New Zealand to be back on the rat track.
Irresponsible spending is what got us into this mess with high inflation.A bloated civil service is always a mark of Labour . National are correcting the ship and u fortunately the waste needs to be trimmed.
Nope, you are totally incorrect Trevor . Back in your hard right wing bubble.
The civil service keeps the country going. You should give it a try.
National are a one term government given their corrosive policies.
” The Government will crow that this reduction has occurred because they have gotten the Economy back into shape by sacking 7000 public servants, kicking 50 000 off welfare and manufacturing a funding crisis in public health ”
This from RNZ.
” Willis said she was very confident when releasing the Budget her tax relief package had not added to inflation, due to advice she received from Treasury.
“We owe to New Zealanders discipline and better value for the money we spend on their behalf … every New Zealander who loses a job is a New Zealander that I worry about,” she said.
Luxon blamed the economic difficulties on the previous Labour government.
“Essentially, poor economic management and financial discipline created rampant domestic inflation and therefore rising interest rates, which have squeezed family and farm budgets. And that squeeze has driven the country into recession and our unemployment is understandably rising,” he said.
That’s hilarious and offensive that Willis can get away with that generalized statement when she is of course referring to her own entitled donors and supporters.
The LINO party led by Hipkins who is conspicuous by his absence.
Its even more hard to stomach this evil bullshit from Willis because there is no one to front up and fight this arrogance and entitlement.
It just shows how negligent the so called left is when it comes to fighting and opposing everything this cartel stand for.
Its no surprise we are losing our people at such an alarming rate overseas.
Replacing all the Kiwis who are leaving with minorities’ immigrating to here to be minimum wage slaves shows the future direction of our once proud country being destroyed for those of us who have our birthright to our nation being systematically destroyed in favor of the extreme neo liberal assault on our country that we are now just tenants occupying these two small Islands.
thats the same lines as the USA was peddling a few months ago and started cutting rates .Now their economy has gone to hell in a hand basket just as we are starting to see here .This cut is the RB getting ahead of the game and trying to stimulate the economy before the rat shit hits the fan ..25% WONT SAVE A SINGLE business from going to the wall and record closures will continue as will mortgagee sales as home buyer went ferral and spent way more than they should have two years ago .Hope fully we have learned that cheap money is not the goose that laid the golden egg .To have an economy dependent on unaffordable houses for all is a massive big fuck up .The rest of the economy is performing badly with not much to build on as we have sold most of our tech companies etc to off shore buyers for years .Our fruit and vege market is controled by off shoe interests eg Turners is German owned so like the banks the profits go off shore .
Time to get inflation under control, it’s the only thing that matters.
Mortgage holders who were dumb enough to buy over inflated houses out of fear of missing out have no one to blame but themselves. Orr should have left the rates the same he’s been pressured. The governments policies have exacerbated poverty, tax cuts haven’t made one iota of difference they are too measly. And the governments policies are doing the opposite of what they claim. More homelessness, more crime, more crowded prisons full of Maori built on stolen and confiscated Maori land. More young NZers leaving for Aus, rich getting richer, nasty greedy swines. Selling of our assets, transfer of wealth, poor rundown public health services and schools. Destroyed race relations, more divide and conquer, more cheap labour, dumb down health and safety, weakening of unions and collectivism. Warmongering putting us in the firing line. Spinning, lies and bullshitting government we are truly fucked and the CoC only been in power less than a year.
it’ll be wiped out by the exchange rate. all good if you don’t have to buy overpriced processed shit from the supermarket oligopoly or overpriced energy from the petrol cartel but then if you’re living your life based on a few basis points off the cost of usury – then you’re already fucked by the overpriced usury bandits at the banks
With the non export economy based on house flicking and with suburban building work down at least 50%, new house starts down, state house build cancelled, govt. construction starts halted and the restaurants empty or closed down and unemployment still rising,
Orr purposely, crashed the economy, to cause evil unemployment, mortgagee sales and failed businesses.
Obviously a rate cut is not great for people who idle their money in banks. Economic activity whimmed up and down by one man. Small business, home owners, borrowers, mortgage holders, second tier lenders, all want low stable borrowing rates.
The rate cut might be more about the RBNZ realising that the current government is doing a far better job of wrecking the economy than it’s own official cash rate.
GOOD COMMENT RIGHT THERE HIT THE NAIL ON THE HEARD
I think the biggest lesson for all of NZ is how we measure and react to inflation data. Our “four quarters “ approach is too slow to react the OCR up or down.
The last four quarters are;
Sep 2023 1.8
Dec 2023 0.5
Mar 2024 0.6
Jun 2024 0.4
Giving total inflation of 3.3% per year.
The 3.3% is an over inflated figure (no pun intended). Looking at the last 3 quarters we see inflation is pretty consistent at around 0.5% per quarter or 2% per year. This is inline with the Reserve Banks mandate. I would bet that Sep 2024 will also be around 0.5%. What I believe got us into this inflation mess is using this “four quarters “ approach with no bias to the last quarter. The last quarter is the one that really matters. A simple time weighted average would be much better at preventing over and under stimulation of the economy.
This is not a “left” or “Right” problem- just fith form maths (year 11??) and pragmatic thinking.