Have you been reading the RBNZ annual report?
Where do you get information like that? I tried the annual report to verify the news and see since 2018 staff expenses have gone from $32mill to $54mill or 69%
What do they all do?
Obviously Adrian doing his best to drive inflation at a local level as well. Money well spent no doubt.
My mate Michael Reddell posted this chart
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Behind the pay wall but I think she is mistaken if she thinks it is the left that have a low interest rate fantasy. In NZ at least slightly left or right of centre, National or Labour they must well know that low interest rates are making inequality worse. The problem is that boomers and home owners also know this and love it and they vote so no one wants to take away the punchbowl. The central bank is supposedly independent of the politicians so voter sentiment should not be affecting them.
Skimming through the RBNZ annual report yesterday I picked up lots of references to leadership. A spineless jellyfish like Adrian has only ever dropped interest rates and he has thrown in LSAP as well so it makes me laugh to hear him talk about leadership while the next generation is shut out of home ownership.
OK Adrian we understand, asset price rises are not part of your mandate even if you are responsible for driving them up.
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Originally Posted by Aaron
Behind the pay wall but I think she is mistaken if she thinks it is the left that have a low interest rate fantasy. In NZ at least slightly left or right of centre, National or Labour they must well know that low interest rates are making inequality worse. The problem is that boomers and home owners also know this and love it and they vote so no one wants to take away the punchbowl. The central bank is supposedly independent of the politicians so voter sentiment should not be affecting them.
Skimming through the RBNZ annual report yesterday I picked up lots of references to leadership. A spineless jellyfish like Adrian has only ever dropped interest rates and he has thrown in LSAP as well so it makes me laugh to hear him talk about leadership while the next generation is shut out of home ownership.
OK Adrian we understand, asset price rises are not part of your mandate even if you are responsible for driving them up.
Great , you should be working for the FBI.
You can now do one of 2 things.
Profit from your new found knowledge
Or
Stop hiding in the Work place bathroom while posting on this forum and go back to your tax paying job.
I think the RBNZ got this decision wrong and a general malaise, (which will suppress economic activity) will fall over N.Z. as Covid inevitably spreads throughout the country. Stimulatory setting should have been maintained...a bit of inflation over the top end of the targeted 3% range is not the end of the world.
Last edited by Beagle; 06-10-2021 at 10:27 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Auckland the only city that matters with the best looking Investors and you know it.
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Originally Posted by Beagle
I think the RBNZ got this decision wrong and a general malaise, (which will suppress economic activity) will fall over N.Z. as Covid inevitably spreads throughout the country. Stimulatory setting should have been maintained...a bit of inflation over the top end of the targeted 3% range is not the end of the world.
Totally agree I see the kiwi dollar is falling, fuel is going to sky rocket if our dollar keeps falling. Add extra costs to small businesses credit line, there's going to be pain coming.
Everyone crowing to raise interest rates because house prices are too high,that's going to be the last of your worries the next 12 months.
To be honest I read the article and if I understand him correctly interest rates are low because investors see fixed interest as a better alternative than investing in business or land and running the economy hot will drive up employment and wages once there is a labour shortage.
Amazing how much crap you could come up with as an economist that sounds plausible. I think fixed interest rates are low because central banks are printing money and buying bonds to keep rates down. They are also setting the OCR at low levels which apparently affects short term rates. But who am I to argue with someone of Paul's intelligence.
I guess comparing today to early 19th century Britain is appropriate. I found this summary that seems to be the society we are set on creating. "During the 19th century, members of the middle class were the moral leaders of society (they also achieved some political power). ... The upper class had titles, wealth, land, or all three; owned most of the land in Britain; and controlled local, national, and imperial politics."
Inflation is always and everywhere a monetary phenomenon. Rising prices are what central banks are after and they are getting them. Raising interest rates reduces inflationary expectations.
Obviously I am no economist but I thought raising interest rates was going to strengthen the Kiwi dollar not weaken it making fuel cheaper relatively speaking.
To be honest I read the article and if I understand him correctly interest rates are low because investors see fixed interest as a better alternative than investing in business or land and running the economy hot will drive up employment and wages once there is a labour shortage.
Amazing how much crap you could come up with as an economist that sounds plausible. I think fixed interest rates are low because central banks are printing money and buying bonds to keep rates down. They are also setting the OCR at low levels which apparently affects short term rates. But who am I to argue with someone of Paul's intelligence.
I guess comparing today to early 19th century Britain is appropriate. I found this summary that seems to be the society we are set on creating. "During the 19th century, members of the middle class were the moral leaders of society (they also achieved some political power). ... The upper class had titles, wealth, land, or all three; owned most of the land in Britain; and controlled local, national, and imperial politics."
Inflation is always and everywhere a monetary phenomenon. Rising prices are what central banks are after and they are getting them. Raising interest rates reduces inflationary expectations.
Obviously I am no economist but I thought raising interest rates was going to strengthen the Kiwi dollar not weaken it making fuel cheaper relatively speaking.
Understand the end goal Aaron
I have been trying to tell you.
I was hoping to short our dollar but FX trader's are well ahead of the game.
The last time the RBNZ raised the OCR the The kiwi dropped from .88c USD to 63c , before stopping the bleeding and eventually lowering the OCR .
That was massive, and like I have been saying they will have to lower interest again.
I was hoping to short our dollar but FX trader's are well ahead of the game.
The last time the RBNZ raised the OCR the The kiwi dropped from .88c USD to 63c , before stopping the bleeding and eventually lowering the OCR .
That was massive, and like I have been saying they will have to lower interest again.
Eventually negative.
The Kiwi dollar falling on an interest rate rise seems counter intuitive. A higher interest rate in theory will attract capital and strengthen the dollar.
Raising interest rates and making our exporters less competitive was an excuse not to raise rates previously.
Auckland the only city that matters with the best looking Investors and you know it.
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Originally Posted by Aaron
The Kiwi dollar falling on an interest rate rise seems counter intuitive. A higher interest rate in theory will attract capital and strengthen the dollar.
Raising interest rates and making our exporters less competitive was an excuse not to raise rates previously.
Like analysing future earnings growth on a company all I've got to go on is the past.
Originally Posted by Aaron
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