1. 'Vote for the other guy'
The Government announced a significant tightening of its migration settings yesterday, moving to increase the skill levels of new permanent residents, suspend applications from parents and toughen the English language requirements. It is also reviewing temporary work visas and student visas, along with the work testing around those visas.
The debate around the future of monetary policy in a world of surprisingly low inflation and fast-rising asset prices is heating up all around the world, and Reserve Bank Assistant Governor John McDermott added some flesh to that debate yesterday in a rare 35 minute live interview with Kathryn Ryan.
Good morning all.
Graeme Wheeler proved himself again yesterday to be a reluctant rate-cutter and in the process stirred up the debate over the Reserve Bank's performance and whether it should still be targeting inflation.
The Reserve Bank has just released its unscheduled 'Economic Assessment', including a warning the currency's sharp rise since June 9 was making it difficult for the bank to meet its inflation targets and that a further easing in monetary policy was likely.
The currency's strength forced the Reserve Bank to announce yesterday it would publish an unscheduled "brief update on its economic assessment" next Thursday morning at 9 am.
Assistant Governor John McDermott chose not to comment yesterday on the immediate outlook for the Official Cash Rate in his speech to the Manawatu Chamber of Commerce on how the Reserve Bank makes monetary policy.
Yesterday was another frantic and frustrating day at the cross-roads of the New Zealand economy -- Auckland's housing market.
For the convenience of email-avoiding subscribers and samplers, here's the email sent earlier on Friday.