ADRIAN ORR our NEW RBNZ GOVERNOR

[Logen Ninefingers]

Orr says the Reserve Bank are putting the cue in the rack and OCR rate hikes are now over. I guess if the Fed keeps hiking then Orr is saying the he is fully prepared to see the NZD capitulate & shed its purchasing power.

—————

‘Federal Reserve officials signaled they are increasingly likely to hold interest rates steady at their June meeting before preparing to raise them again later this summer.’

[Logen Ninefingers]

“Paging Mr Adrian Orr”.

—————

‘The Federal Reserve held its benchmark interest rate steady for the first time in more than a year following ten consecutive increases but signalled its intention to implement further rises this year.’

[Logen Ninefingers]

‘Fed skips June interest-rate hike, but points to two more increases this year.’

[Logen Ninefingers]

Looks like the NZD will be headed for a significant decline later this year.

[winner69]

Hey Aaron, you might enjoy this

What an amusement park can teach us about central banks


https://timharford.com/2023/07/what-...central-banks/

[Aaron]

Hey Aaron, you might enjoy this

What an amusement park can teach us about central banks


https://timharford.com/2023/07/what-...central-banks/

Sounds like a strong argument for price stability.

Unfortunately when Adrian was easing everyone loves him and thinks he is a genius and we get breathless stories in the news and conversations at the pub about how much everyone is "making" on their houses.

When he stops acting like a retard he is vilified for destroying the economy and we get pointless rubbish articles like this in todays herald.

https://www.nzherald.co.nz/business/...HI37ZZLH7JPY4/

Our collective household net worth fell $42.7b, or 1.9 per cent, in the March 2023 quarter, the fifth successive fall, according to the figures released today.

Or this

https://www.nzherald.co.nz/business/...A7HM27E4SHFNQ/

Those who wanted the security of home ownership, and believed they’d miss out if they didn’t partake in what felt like a state-guaranteed housing market, borrowed up to their eyeballs to get on the bandwagon.

I've given up caring, I can't change anything so suspect we will need to go through the same things as happened in the 1930 and 40s. Human nature is what it is so invest accordingly.

[Logen Ninefingers]

Core inflation still running red hot, Orr says he has put the cue in the rack on OCR increases, US inflation is considerably lower than ours & they have signalled two more rate rises this year…make of all this what you will. Then bear in mind that the impact of the fuel tax being put back on petrol on 1 July will only show up in next quarter’s figures.

NZ is in an extremely difficult position & I guess people are just hoping that Orr knows what he’s doing.

[Aaron]

NZ is in an extremely difficult position & I guess people are just hoping that Orr knows what he’s doing.

Inflation continuing at 6% double the peak of the mandated range, yet no questions being raised regarding the competency of the RBNZ, the Monetary Policy Committee or Adrian Orr. I guess they can't help supply chain issues (are there still any???) or war in the Ukraine. How many NZ businesses struggling to get commodities out of or into Ukraine??

Lets be honest the people who bought houses over the last few years will be looking back in a couple of years and being grateful for Adrian and his crew and the high inflation and low interest rates they provided. Crazy out of control monetary policy is the only way house prices in NZ make sense now and into the future.

[JBmurc]

Looks like the NZD will be headed for a significant decline later this year.

yes esp. if our RBNZ makes noises of lowering rates ...

Many analysts see Oil at much higher levels later this year+ ... major force behind inflation ..

[winner69]

See NZDGBP was .47 something earlier today. Hasn’t been that low for ages

They say cross rates reflect the relative strength of the economies …..I keep hearing the UK is in a mess ……jeez NZ economy must be really bad