OCR rise and the green shoots of recovery myth
Analysis: The economy has become Nicola Willis’ political problem
ANALYSIS: Nearly a year ago, Nicola Willis stood with Christopher Luxon and told New Zealanders not to listen to the “merchants of misery” in opposition, and said things were going to get better soon.
But out in the wallets of Kiwis, the misery lingers a little longer.
Power prices, grocery bills, rates. Up, up, up.
And on Wednesday, the Reserve Bank added the anxiety of rising mortgage rates to the ever growing bill-worry pile.
It’s not all bad. And maybe interest rates won’t go up, like the finance minister has said. Banks had already been primed for some hikes, so we’re already paying the price.
And while in May, the Reserve Bank said inflation was expected to peak at 4.3% in the third quarter, it now says inflation may have already peaked at 3.9% in the second quarter.\
Willis was quick to spin the official cash rate hike as a favourable, that the economy was strengthening and the recovery was getting back on track.
But as compared to a year ago, asking households to hold on to the vision that things are getting better after a years-long cost-of-living slog is a hard sell.
Stuff
National don’t have a once in a century pandemic to explain away the cost and have borrowed more than Labour did.
Pretending the OCR rise is some sort of thumbs up for the economy is ridiculous, as Bernard Hickey argues…
In my view, a hike would be a mistake when 12.9% of the workforce is under-utilised and youth unemployment is at a 30-year high of 14.4%. That includes 20.3% of women in my daughter’s age group of 20-24 being not in Education, Employment or Training (NEET) in the March quarter, up from 18.4% in the December quarter. That doesn’t feel like full employment generating inflation.
…he’s right.
The OCR rise is to do with the inflation Trump is producing, not because the economy is growing, unemployment is crippling too many for any genuine growth.
As for ASB report claiming the green shoots of recovery are back, no where do they even acknowledge in that report is the impact of the Super El Niño on its way.
The last 3 El Niño events have cost us $12billion dollars, apparently the worst one in 150 years won’t cost us anything???
Look.
Capitalism likes to fuck, and it needs never ending cheerleading to do that fucking.
If one negative word is uttered, Capitalism loses its boner and the orgy of trading comes to a screaming halt.
National rule NZ for their donors interests and their donors need more pollution and less regulation which is all National provides.
You can’t run an economy, society or political system on that.
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For a short summary.
When Labour hiked up the interest rate it meant they were losing control of both the economy and inflation.
When National jacks up the interest rate it means they have a strong economy and are winning the battle against inflation.
Mungo no understand.
Keep this sentence of Martyn’s in mind! “National don’t have a once in a century pandemic to explain away the costs and have borrowed more than Labour did!” While NZ has a weak, RW biased media and the CoC is full of corruption and liars, there will not be any green shoots, however much they wish for them. The CoC has backed themselves into a very sticky corner from which there is no way out! Only the stupid out there will believe their recovery myth, whlie the rest of us clearly see the situation exactly as it is. This CoC has made so many dumb decisions, designed for their grasping, greedy enablers, while giving the needy, who are already carrying most of the load, more kicks in the teeth! Fairness, or a level playing field, just don’t exist. Shame on their greed, ignorance and cruelty!