Finance Minister Grant Robertson expects new Reserve Bank Governor Adrian Orr to review the bank's modelling that currently shows unemployment cannot go any lower without generating an inflation surge. Bernard Hickey reports.
In today's email we find a landmine for the incoming Reserve Bank governor to defuse.
Rod Oram argues in his weekly column that there's never been a better time to build a high productivity and high wage economy, but there's also a risk the current good times will allow complacency to lock in New Zealand's bad habits.
The old guard still running the Reserve Bank are in no mood to cut interest rates, but new Governor Adrian Orr will face pressure from the Government and some economists to cut when he arrives in just over six weeks as inflation remains stubbornly at the bottom end of the bank's target band.
Bill English was just starting to roll out his social investment idea throughout Government when he lost power. His frustration at Labour's reluctance to wholeheartedly adopt the idea was evident in an interview with Thomas Coughlan.
Trade and Export Growth Minister David Parker has attempted to win over critics of the revived Trans Pacific Partnership free trade deal at a public meeting, arguing the Government has kept its promise on five “bottom lines”.
The Reserve Bank faced questions from a Government MP today about why it couldn't cut interest rates to drive unemployment even lower. It argued in response further rate cuts could inflate the housing market again and it preferred interest rate stability to taking a risk that inflation could reappear.
The Acting Governor of the Reserve Bank, Grant Spencer, has warned households to prepare themselves for higher interest rates in the future.
The Reserve Bank has held its official cash rate at 1.75 percent as expected, and has forecast it won't need to hike interest rates until 2020 and 2021, and then only slowly, because inflation pressures were moderate.
In today's email we asked whether the economy is getting closer to its increasingly hard to define "speed limit".
Unemployment's fall to a nine-year low of 4.5 percent begs the question for interest rate setters: has the economy revved so hard that it is about to generate inflation? Bernard Hickey looks under the hood and finds a higher performance engine.
The verdict on the tempting idea of a sugar tax is coming in. They don't work as well as many hoped. So the Government wants to nudge the industry to voluntarily cutting the sugar content of food and drink, but may use the stick of regulation if necessary. Thomas Coughlan reports.
Employment grew more than expected and unemployment fell more than expected in the December quarter, despite lower business confidence and fears by some that the economy slowed during and after the election.
In today's email we argue that the Wall St slump does not herald the start of a new GFC.
With Parliament currently considering a "waka-jumping" law to prevent MPs from switching parties, Liam Hehir argues voters, not party leaders, should hold politicians accountable for any defections.
Sam Sachdeva was at Waitangi during Jacinda Ardern's historic visit. He shares his thoughts on what the trip means for her, and the challenges that lie in wait.
The U.S. stock market slumps 4.6 percent on fears of rising inflation and interest rates, but few see it as the start of a new Global Financial Crisis. Bernard Hickey reports.
Prime Minister Jacinda Ardern has wrapped up her five-day visit to the Far North by attending the Waitangi Day dawn service. Sam Sachdeva reports from Waitangi on her final words and the parting gifts she received from locals.
On Monday, Jacinda Ardern made history as the first female prime minister to speak at the Waitangi powhiri. Here is her full speech from the day.
Jacinda Ardern has made history as the first female prime minister to speak at the Waitangi powhiri. Sam Sachdeva reports on the mood from the Treaty Grounds, and Ardern’s call for her government to be held to account.
In today's email we asked what next for Jacinda Ardern and the Labour-led coalition Government.
Jacinda Ardern's Labour Government did better than expected in its first 100 days. Bernard Hickey looks ahead to the bigger tests in the next 1,000 days before the 2020 election.
Will Bill English's vision of highly targeted and data-driven welfare spending survive under Jacinda Ardern? Thomas Coughlan reports it is likely to morph rather than disappear.