The Reserve Bank has left the official cash rate or OCR at 1.75 percent for the tenth consecutive decision. In a statement this morning the RBNZ said it expected the rate to stay at 1.75 percent for “some time to come”, with the risks of either cuts or increases evenly balanced.
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.
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.
In today's email we asked whether the economy is getting closer to its increasingly hard to define "speed limit".
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.
1. Winston wins again
In today's email we looked in detail at a landmark speech by acting Reserve Bank Governor Grant Spencer.
In this morning's email we dig into the detail of Acting Reserve Bank Governor Grant Spencer's first MPS and press conference and what it might mean for new Finance Minister Grant Robertson's reform plans.
New Finance Minister Grant Robertson faces a tough time convincing existing Reserve Bank staff that they can run the economy hotter to get unemployment below four percent, at least for now.