Oh look at that – OCR to go higher
The take away from this weeks OCR is that they were looking to INCREASE and that they are now predicting a top OCR of 5.7!
I keep arguing that there are now structural changes in the global economy altho will only continue to feed inflation.
One of these structural change is the increasing geopolitical instability and free trade supply chains changing from just-in-time to just-in-case models as Western companies disengage from China.
The other major structural change is the shut down of the climate from catastrophic climate change which will only force insurance premiums up and up and up.
Add on top of this the local Government rates going up to cover the infrastructure costs of mass immigration and we have a perfect storm of info;ation that we can’t control.
The Reserve Bank will be forced to lift the OCR before the end of this year causing even more pain amongst home owners.
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 – please donate here.
If you can’t contribute but want to help, please always feel free to share our blogs on social media.
The OCR is used as an instrument to screw over the workers and first home buyers.
Think about that stupid statement next time a Labour trained tradie comes to fix your plumbing or electrical and the now well paid nurse is giving you treatment at hospital because she is now earning 100% more than she was in 2016
Well, I hope none of you still on fixed rate mortgages from before the hike for the next couple of years have been doing anything but paying the minimum and putting money away in a term deposit or PIE to pay them off before things roll over. These usurers deserve to have their tricks turned back on them. Rabo have good 12 month rates still.
A few here are quick to solely blame Labour, for the fiscal carnage, yet seem to have forgotten it was the Reserve Bank that allowed the easy money to flood the market. Failing to turn the tap off in time.
And it is the Reserve Bank that is now applying the squeeze.
New Zealand cannot decrease rates until the US Fed does so, since it would tank the NZ dollar making all our imports more expensive (which of course equals higher inflation). We don’t have a truly independent Reserve Bank, it is beholden to the US Fed. The US can no longer export their inflation after they sanctioned Russian financial interests, which sent shockwaves through the entire global financial sector (since it showed the US cannot be trusted to keep any financial promises if your government does something they don’t like). Thus interest rates will remain high for the foreseeable future.
Luxon was going to wave his wand and the ecoonomy was going to be all sorted by now .He announced a $24 million hand out yesterday without saying where the money was coming from and who was going to be accountable for the out come .Now pork is going to rip the west coast apart and create a massive housing shortage along with massive price increases for the few houses there are and rents will double .Local rates will increase by a massive amount to pay for the extra 3 waters needs .
But National, ACT and Winston First adherents will all blame everything on Labour and its wasteful spending and actions that negatively impacted the economy (e.g. lockdowns) or the way the economy operates (e.g. transfers). The worse thing is that many will actually believe their BS because they lack the ability to critically analyse policy and the impacts thereof.