The news that matters this morning
Back by popular demand, here's the 8 things that mattered in our political economy in the (short) week that was, along with Weekend Reads at bottom.
In this morning's email we looked at how, and why, Labour is keen not to scare the business horses.
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.
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.
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.