NZIER Quarterly Business Opinion and response to pricing intentions sys Adrian needs to increase OCR by a minimum of 50 bps tomorrow
But he want and he'll get further behind the curve and go down in history as te worst Governor we've had ..... even surpassing Wheller
Well, he probably learned in management training that charts always should start at left bottom and move to the top right. Based on this training all looks good - no governor before him managed to create such a beautiful chart.
But - to be fair ... it is really easy to mock anybody in this positon, and there are probably far more different and not alignable views around what the RBNZ should do in the current situation than there are readers of this thread.
Given that his objective is not just keeping the rate of inflation in a predetermined window despite him having no control over imported inflation (which is the lions share of the current inflation) ... he has got as well the additional task to keep unemployment numbers low (which is mutually exclusive to objective A).
I think the worst you can say about Orr (or anybody else in this position) ... they must be pretty stupid, otherwise they would not have accepted their job.
Ouch - this is concerning, isn't it?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
BP mentions 'imported inflation' ..... hmmm ....suppose that is what some want us all to believe ....and it says so in the media so must be true
Given that most of the stuff we consume is either produced overseas (like electronics, cars, fuel, 95%+ of our clothes) - or subject to world market prices (like milk, butter, vegetables, meat, ...) am I not sure why you put the "imported inflation" into the realm of faith (believe)?
I would have thought that one can see that just by looking at the facts ...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
RBNZ made a decision to introduce LSAP programme and extremely low interest rates which are massive contributing factors.
There's a reason why the Chief Economist at RBNZ decided to resign at convenient time - right when the media started talking about inflation. The same guy who called economic easing as "business as usual".
BP mentions 'imported inflation' ..... hmmm ....suppose that is what some want us all to believe ....and it says so in the media so must be true
So much of what we need is produced overseas - computers, cars, machinery etc. Sure NZ policies have encouraged investment in land and hence land price inflation, but much of that asset inflation is kept out of the CPI index.
So much of what we need is produced overseas - computers, cars, machinery etc. Sure NZ policies have encouraged investment in land and hence land price inflation, but much of that asset inflation is kept out of the CPI index.
Maybe running the economy to hot for too long creates labour shortages.
Re BPs comments I am sure plenty of the inflation is home grown as well as imported. RBNZ is not the worst money printer in the world but their balance sheet expanded pretty significantly in response to the pandemic.
Inflation is always and everywhere a monetary phenomenon, at least it appears to be as inflation has taken off after the biggest money printing binge in history.
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Originally Posted by winner69
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