I have radio nz on in the car when going to and from work sometimes. Last night some leftie economic commentator seemed angry that the RBNZ was engineering a recession and causing people to lose jobs by raising the OCR.
This morning they were debating whether the RBNZ should raise the OCR by .25%.
Never much debate when rates were dropping more just excitement that we had the lowest mortgage rates ever and the highest house prices to income ever.
More importantly no debate regarding Base money in NZ tripling from under $20bln in 2020 to just under $60bln two years later. The GFC saw base money double from $5bill to $10bill but that just pushed up asset prices not CPI so all good. Adrian's inflation makes the GFC response look pretty weak.
Why is everyone getting hot under the collar about the symptoms not the causes of our cost of living crisis (just call it inflation because that is what it is).
https://www.rbnz.govt.nz/-/media/518...723f98974.ashx
I know I am not intelligent but sometimes it seems to me that all the yap in the news lacks a bigger perspective on things.
We won't have to worry about rate rises for long. Things are looking pretty grim so more unconventional monetary policy just around the corner to "fix" things. Did I read right this morning, ezibuy's sales dropped 51% over six months to December. Womens clothes and household stuff, demand falling off a cliff?? That can't be good for an inflate and consume economy largely based on building houses for immigrants.
The gold price this morning says some people other than me expecting more currency debasement and inflation as the answer to all our problems. Printing money and suppressing the price of capital is easy and the only thing they know.