Reserve Bank

[Dr_Who]

YAWN! Who gives a **** these days?

All hot air and the market dont give a hoots. The retail banks just laughs it off, the NZD dollar continues to climb, the retail rates continues to climb, our economy continue to sinks.

Again, the RB has shown it is more reactive than proactive. All bread and butter stuff. Are there anyone at the RB with some creative ideas? I am close to selling all my NZ equities.

[macduffy]

We need to be realistic, doc.

The RBNZ has very limited influence on the NZD which is being shoved around by world pressures, particularly the weakness of the USD. Not much ammunition left with an OCR at 2.5% - very soon it becomes a case of pushing on a string. Incidentally, our important cross rate with the AUD remains pretty stable as the Aussies are subject to the same pressures as ourselves.

While we continue to spend more than we save, the overseas creditors will have to continue to fund us. I don't think they take much notice of what the RBNZ does to the OCR!

[Dr_Who]

Aust is very different from us. They have huge natural resources and with little debt, so they can weather a higher exchange rate better than we can.

Anyway, I am just disappointed that the RB have little room or lack creative ideas to push down the rates.

[whatsup]

DR WHO, VERY IMPORTANT nonstatement today, Bollard has this morning announced( without announcing ) that the next movement in the OCR will be up allbeit a small rise but a rise never the less next year. Today was the END of the falling of the OCR and the only way from here is up. oh $h!T !!!

Already the Aussie $ has moved 1% in an hour!! like wise the U S $

[Toddy]

YAWN! Who gives a **** these days?

All hot air and the market dont give a hoots. The retail banks just laughs it off, the NZD dollar continues to climb, the retail rates continues to climb, our economy continue to sinks.

Again, the RB has shown it is more reactive than proactive. All bread and butter stuff. Are there anyone at the RB with some creative ideas? I am close to selling all my NZ equities.

Would this not be a good reason to invest. Everyone complained for years about the influence Helen and Cullen were having on the free market with their continuous interference.

The market has now been given a chance to find its own feet. If the banks are screwing mum and dad then why would it not be a good idea to grab a slice of the pie for yourself.
Foreign investors may take another look at NZ assets.

[POSSUM THE CAT]

The only way the official cash rate can get to work on Mortgages is if the Government starts lending on mortgages (Just restart the old state advances corporation) and as the government is paying more than the OCR on the bonds it is issuing. What would they be charging for mortgages. In my opinion most MP's would no less about common sense finance than the average primary school student. They have been so indoctrinated in economic theory at university they cannot see the wood for the trees
Example OCR 2.5% +0.7% for govt. guarantee call lending rate would need to be at least 5.25% on floating Would you be taking all the risk of default & the cost involed in possible recovery of delincquent loans for a Mere 2%. Get Real Everbody.

[Snoopy]

YAWN! Who gives a **** these days?

All hot air and the market dont give a hoots. The retail banks just laughs it off, the NZD dollar continues to climb, the retail rates continues to climb, our economy continue to sinks.

Again, the RB has shown it is more reactive than proactive. All bread and butter stuff. Are there anyone at the RB with some creative ideas? I am close to selling all my NZ equities.

Ten years on and the attitude of the Reserve Bank in NZ has certainly changed!: A falling dollar, proactive reserve bank and a growing economy are what we see today.

For those interested in how the Reserve Bank can influence banking policy, and those interested in investing in banks, I came across this very interesting 'Singaporean perspective' introductory article.

https://www.theancientbabylonians.co...stocks-part-1/

Note that the Singaporean equivalent of our Reserve Bank is the MAS, the 'Monetary Authority of Singapore'. One thing I took from the article is that like the Adrian Orr headed Reserve Bank, the MAS does not consider the current Basel III minimum credit standard for banks to be sufficient.

SNOOPY