So Adrian rides into town and makes himself a hero and cuts OCR to 0.25%.
Impact and timing to make me look good ...jeez I’m cynical.
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QE NZ
should further stimulus be required, a Large Scale Asset Purchase programme of New Zealand government bonds would be preferable to further OCR reductions.
I hadnt clicked - its a 0.75% CUT. massive. even massiver than his earlier go.
Orr shoots all his load in two single goes.
So, the RB talks about all the "other" weapons they have to combat the current crisis but the first reaction is to use the same old move - cut the cash rate!
:confused:
it feels very ironic to me that the RBNZ hasnt even had time to implement its strategy to combat a 'one in 200 year' event before that very event happens , and even worse they decide to delay implementation of that strategy.
statistics are so useless huh. Fat tails rule the day.
Adrian been outgunned today by Jerome...The FED cut rates 1% to Zero use what the FED calls crisis policy...and the Futures have been closed...Hmmm kinda doesn't sound good in the world atm..eh
Will NZ banks pass on all the rate cuts ?? and will kiwis get over the FEAR of CORVID19 and continue to buy and build new properties (really the heart of NZ growth over the last many years =Consumer spending)
Reddell not impressed
https://croakingcassandra.com/2020/0...etty-dreadful/