OCR slash is desperation from Reserve Banks as Economic panic sets in
Reserve Bank slashes Official Cash Rate by 50 basis points
- The RBNZ has cut the OCR by 50 basis points to 2.5 percent.
- Opinion among economists and markets had been divided between 25 and 50 basis points.
- The bank’s Monetary Policy Committee noted growth is weak and uneven and inflation higher.
- It left the door open for a cut in November.
The Economic Panic has set in and the Reserve Bank lights there stagflation fuse by giving mortgage holders more cash to fuel price inflation that will burn those who rent.
How bad is the economy?
Take a peek.
Look at these Economic numbers today from Bernard Hickey...
The survey found:
- Businesses reporting lower activity in the three months, with a net 14% down in Q3 vs a net 22% down in Q2;
- Business expectations about the next three months worsened, with a net 9% expecting improvement vs the net 18% who said in Q2 they expected improvement in Q3;
- Yet again, the actual experienced activity (-14%) was much worse than expected (+18%);
- Businesses reported shedding jobs in the last quarter, with a net 23% cutting workers, up from a net 12% cutting jobs in the June quarter;
- Business expectations for hiring in the next quarter was stuck at a net 4% expecting to hire more;
- Outcomes for jobs in Q3 (-23%) were again much worse than the +4% expected for the quarter when businesses were surveyed in Q2.
- Investment intentions for plant & machinery deteriorated to -13% vs +8% in the June quarter
- Investment intentions for buildings slumped to -20% vs -1% in the June quarter.
What’s the Government’s response to the economy imploding because of their policies?
This week Prime Minister Chris Luxon decided to do what the National Party have always done when polls are dropping, and that is to bash the dirty filthy bennies by forcing 18 and 19 year olds off welfare and calling that ‘tough love’.
When asked where these teenagers were supposed to get jobs, the PM claimed that businesses were calling out for young workers.
When contacted by media about those claims, Business said, ‘no we are not, we are barely staying afloat as it is”.
Bashing the dirty filthy bennie is always a vote winner when the economy fails and Chris Luxon is so weak he needs to bash teenagers on benefits to look tough.
Telling unemployed teenagers that “The world doesn’t owe you a living” is all fine and dandy, but he’s also the Prime Minister who has destroyed 6000 jobs in retail and hospo while destroying 20 000 in construction. The world doesn’t owe anyone a living but equally where are they supposed to get a job when he’s so busy destroying them?
This isn’t ‘tough love’, it’s ‘Manufactured righteousness’
How does removing the jobless benefit from 4,300 unemployed 18-19 year olds and making them stay or return home to be supported by parents on less than $65,529 per annum going to help any single one of them find a job?
Bashing these teenage beneficiaries and cutting them off welfare will only save $39million per year. This isn’t a real social policy is it, this is a revenge fantasy masquerading as a social policy!
What’s the Government’s response to the economy imploding because of their policies?
Unemployment is 6.2% in Auckland and Ikea received more than 25,000 applicants for 500 jobs at their new store.
Doesn’t that level of desperation make the Prime Ministers job comments look cruel and out of touch?
What’s the Government’s response to the economy imploding because of their policies?
The solution the Government have offered up is allowing 200 gold visa holders to buy citizenship and purchase houses worth $5million, how will rich people buying houses off other rich people help Kiwis?
The Reserve Banks has rushed in and hoping to avoid stagflation by insuring it.
This is panic, not economic stewardship.
Rich people are fearful and that bodes ill for the poor.
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Disgusting. These rat bastards have deliberately destroyed infrastructure projects to hurt jobs, while simultaneously kow-towing to US pressure to suck the sav on Trump’s tariffs without any retaliation or making the slightest effort to build trade with actually human run countries.
Low interest rates = a failed economy .Willis is wetting her pants with excitement at the RBNZ dropping the rate and on the other hand shitting her self as the noose gets tighter as the next election comes around .
How can we be sure that decreasing the bank rate really fights inflation. Some inflation is imported, some inflation results from increased profit margins. The Reserve Bank is independent but contains economists solely of one ideological sect (cult). Even the Bank of England is questioning their ability to control inflation.
This arrogant, thick-skinned CoC has almost done its dash! It is so close to falling over that it would be kind to put an end to their reign and the misery it is causing New Zealanders before they can do any more economical and social damage. Therefore all changes that they have in the pipe-line would need to be halted NOW before they fail as well. Our Governor General needs to put in “Caretakers” until we can have an election. If you can’t see the dangers of leaving this runaway train to keep grinding out of control, then you are complicit, as well as crackers! Since they got into power they have been totally devoid of any fair or intelligent policies and have shown zero leadership or direction. They MUST GO NOW while we still have something left to salvage. We cannot sit and watch this circus any longer.
If the latest poll is anything to go by there is not a huge swing to the opposition parties.
Times are tough but some hard vlcalls were needed now the upswing will come i hope.
They are not hard calls, they are reckless and immoral and very easy to make when you’re wealthy and sorted.
So I’m a multi millionaire and I tell people they need to get a job or I will pull the benefit, does it affect me? No not in the slightest.
Hope may spring eternal but it is not a financial plan
That’s all Willis has, hope. Hope no one is noticing how she has ruined the economy.
The OCR cuts are about the ‘squeezed middle’ aren’t they? If you’ve got a big mortage – any mortage – its good news. Although not all on fixed rates will benefit immediately. And in theory more money in your pocket means you can spend a little more on buying stuff, supporting the economy, supporting employment. Its plant old Econmics 101. Does it really work? Or are the govts woes far more structural, far more related to so called international headwinds? Anyway, Luxon and the Nats needs the squeezed middle on board if they’re ever going to have a chance of reelection, the swing voters who may well jump ship if things don’t improve.
Look we all want our Rangatahi to have a job but realistically the jobs are not there and our PM needs to stop telling porkies. Also to make matters worse the COC policies have made it harder by getting rid of many of the pathways for Rangatahi to not only get a job but also to get into training and upskilling. The COC have increased the number of hours foreign students can work, cuts courses and first year funding for university, allowed more unskilled foreign workers into our country, created the economic conditions for companies to reduce and lay off staff, reduced apprenticeship opportunities, cut university and training institutes like Polytech’s funding.
Na, no worries, Nicolas got this.
And Wining Winnie froths at the bung over a busted window!
The global post-Covid wave of greedflation, as parasitic corporations sought to recover lost profits for their grasping shareholders, has left an enormous hole in our pockets.
Prices for everything REMAIN sky high. Whatever pathetic wage increases negotiated since have NOT compensated.
Workers continue to be extorted to pay for parasitic lifestyles of the wealthy & greedy.
This far-right government has exacerbated this chronic and substantive drop in purchasing power with their batshit crazy Liz Truss economics.
If they think Reserve Bank monetary policy will have any significant effect on plummeting affordability of living for the average Kiwi, then they’re even more stupid than they appear.
By how much do you think that supposed extra discretionary spending the one third of Kiwi mortgagees have will result in YOU suddenly having your spending power recover to pre-Covid levels? Yep that’s right. SFA.
The only ones laughing are their private Aussie Bankster mates. You’ll note none of them are passing on the full 0.5% drop in the OCR. So yet more profits, on top of their ALREADY record profits!!
Dumb NAct voting Kiwis….suckers to the very end.
This from Treasury today:
Finance Minister Nicola Willis is still borrowing to keep the Government’s lights on. Net core Crown debt reached $182.2b – or 41.8% of GDP – which is an increase of $6.7b from the previous year. Gross Crown debt is $203.7b, which is up $27.7b over the course of the last year. Total expenses continue to exceed total revenues. Those expenses are $183.5b, which is $3.4b more than last year.
If this were Labour National/Act and their sycophants in the media would be calling for resignations….but oh no we have the bald ex deodorant salesman Pm who hasn’t a clue, and the real pig with lipstick on, the pretend finance minister Nicky No Boats Willis……..we are truly intercoursed!
A government must from time to time be cruel, because it cannot humour every call upon it.
But no government is ever entitled to be stupid.
Oh we will include the record earnings of the power generators in the income sheet but exclude the record loss by ACC in the costs basket .Now we can see why the government has done nothing about power prices as they are propping up the cooked books to make no boats look less of a liability ,creative accounting at its best .