ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

So RBNZ staff numbers have dramatically increased on Labours watch, yet you throw out barbs at ACT. Unreal.

I am not sure you can blame Labour for this. RBNZ is independent of govt. Not even sure how they are funded. Maybe they just print what they need.

Pretty long bow to draw tying RBNZ excesses to Labour.

What are ACT's policies regarding the RBNZ and monetary policy?

I thought you were concerned about first home buyers? ACTs tax policy will further entrench the wealth divide then poor people really will have something to be envious about.

Any waste or corruption when it comes to taxpayer dollars is an outrage it does not matter who is in govt.

[blackcap]

I am not sure you can blame Labour for this. RBNZ is independent of govt. .

.

Surely you are joking right?

[Aaron]

Surely you are joking right?

You are right the RBNZ is not independent of govt, but the govt does not manage the day to day running of the RBNZ that would be Adrian as CEO and the RBNZ Board (jobs for the boys(insiders)) you would assume.

Per the Reserve Bank Act.

(d)
the role of the Minister to oversee and manage the Crown’s interests in, and relationship with, the Bank; and
(e)
a board to act as the governing body of the Bank; and
(f)
a Governor of the Bank to be its chief executive and a member of the board; and
(g)
a monetary policy committee (the MPC) to perform the function of formulating monetary policy.

It would be like blaming the shareholders for how a company is being run by the CEO and his/her board of directors.

[FTG]

1st principle to keep top of mind - The RBNZ is an instrument of the State.

Supposedly independent but the reality is "Shock & Orr" & Robertson are very chummy and both wear the same brand of deep pink-tinted glasses...
Thick as thieves in fact, especially when in comes to complicity in regards to the tenuous monetary & fiscal position NZ Inc now finds itself in.

As an aside, contrary to what many think, behaviour of CB's globally (esp. the FED) is generally reactionary, NOT preemptive. Despite all the smoke & mirrors, CB's actually follow the market, rather than lead it when it comes to "setting" interest rates.

Interesting to see in NZ that just yesterday Govt. 10 yr bonds traded at their highest level since 2011. The market is speaking an entirely different language to Orr...Another Canary in the mine?

Orr, in an attempt to assist his Leftie mates (and masters), will resist like heck to lift the OCR any further prior to the election.

[blackcap]

You are right the RBNZ is not independent of govt, but the govt does not manage the day to day running of the RBNZ that would be Adrian as CEO and the RBNZ Board (jobs for the boys(insiders)) you would assume.

Per the Reserve Bank Act.

(d)
the role of the Minister to oversee and manage the Crown’s interests in, and relationship with, the Bank; and
(e)
a board to act as the governing body of the Bank; and
(f)
a Governor of the Bank to be its chief executive and a member of the board; and
(g)
a monetary policy committee (the MPC) to perform the function of formulating monetary policy.

It would be like blaming the shareholders for how a company is being run by the CEO and his/her board of directors.

It might be, but I think we can really blame Labour for how the RB is being run. They appointed Adrian, and they will be in his ear.

In reality, it is like the shareholders running the company by telling the CEO and board what to do and what direction to take....

[Logen Ninefingers]

https://www.nzherald.co.nz/business/...NIAP2FEEDSVZQ/

16 Aug, 2023 02:00 PM

‘The Reserve Bank has left the official cash rate on hold at 5.5 per cent.

The Bank has today delivered a full Monetary Policy Statement including fresh forecasts for the economy.

The RBNZ said the OCR would need to remain restrictive for the foreseeable future.

New forecasts in the Monetary Policy Statement indicated a small chance of one further rate hike in the fourth quarter.’

[Logen Ninefingers]

https://www.bnz.co.nz/assets/markets...ca070fdca347d7

‘In our view the wheels are starting to well and truly fall off the New Zealand economy.

In today’s August Monetary Policy Statement the Reserve Bank recognises this in assuming the economy goes back into recession in the second half of this year. In our opinion, the risk is that the downturn turns out to be more aggressive than any of us have anticipated. Recent data are certainly suggestive of this. The BNZ-Business New Zealand PMI and PSI have both turned nastily negative, dairy commodity prices are slumping knocking the stuffing out of rural sector earnings that were already under pressure, spending on discretionary items is falling, surging petrol prices and rising interest rates are squeezing the household sector, and the recent boom in immigration and tourism looks set to slow. What chance is there against this backdrop that the Reserve Bank would raise its cash rate any time soon? Very little is what we would contend.

Yet, even in this environment, inflation refuses to die. In fact, inflation has recently accelerated thanks to local body rates, an excise tax hike, insurance costs and rapidly rising petrol prices. Some of these factors can be looked through but others cannot. And, more importantly, there is always the very real chance heightened headline readings feed into raised inflation expectations which, in turn, help keep inflation elevated for longer. This process is exacerbated by the apparent increase in indexation that appears to be occurring across the economy.’

[Panda-NZ-]

I am not sure you can blame Labour for this. RBNZ is independent of govt. Not even sure how they are funded. Maybe they just print what they need.

Act and National are obsessed with killing off the RBNZ's target for full employment (some would say that is political interference too).

Which means more jobless & lower wages for NZers... to please their business donors.

[Logen Ninefingers]

Act and National are obsessed with killing off the RBNZ's target for full employment (some would say that is political interference too).

Which means more jobless & lower wages for NZers... to please their business donors.

The country managed perfectly well for decades without employment as part of its mandate, right up to the point where this shambolic Labour outfit took power and sneakily looked to shift the responsibility for employment from government to the Reserve Bank. National will simply be restoring the historical status quo.

[Panda-NZ-]

The country managed perfectly well for decades without employment as part of its mandate, right up to the point where this shambolic Labour outfit took power and sneakily looked to shift the responsibility for employment from government to the Reserve Bank. National will simply be restoring the historical status quo.

Define perfectly well with low productivity, 5% unemployment and no real wages growth except for the lower end via govt mandate (MW increase).