ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

Thanks Adrian, admittedly only plays a "bit part" in inflation despite being responsible for price stability but 10% food inflation outstanding work if only it were house prices.

https://www.interest.co.nz/personal-...ate-food-price

National have a plan to fix inflation though (see at the bottom of the article.)

"National has a plan to fight inflation. We will address worker shortages, reduce costs on businesses, bring discipline to government spending, give Kiwis more money in their back pockets through prudent tax reductions, and focus the Reserve Bank solely on managing inflation."

1/ More immigrants lower wages. I have already stated my dislike for this. Lower wages but higher house prices (not a big part of CPI fortunately) Does not seem to reduce the need for more immigrants rather an upward spiral much like using debt to solve a debt crisis, more required each time.

2/ Reduce costs on businesses. Wages for one but not sure about others maybe tax cuts.

3/ Reduce govt spending. Cutting wasteful spending, no one would disagree with that. Cutting essential services? a hard job to tell the difference sometimes. Depends on your viewpoint.

4/ prudent tax reductions. Inflationary, but based on earlier proposals european car dealerships and yacht manufacturers might be the most affected by increased demand. Cutting taxes for the rich not only provides the magical trickle down effect but, if the plebs don't get any tax cuts they can't spend anything either therefore limiting the inflationary effects of any tax cuts.

5/focus the Reserve Bank solely on managing inflation. Long overdue, but don't expect it to be a priority in the face of house prices falling and while Adrian is at the helm a path of least regrets and sustainable house prices might reduce the effectiveness. Any other competent RBNZ governor should make this work without the full employment mandate. Opening the immigration spigot and not worrying about unemployment levels, should really knock wage inflation on the head.