Tuesday, 15 October 2024 10:25

Too little, too late

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: Economists, in their usual excitable tones, have, for a while now, been openly questioning the Reserve Bank’s glacially slow reaction to the recessionary economic conditions we’re all drowning in.

ASB’s October RBNZ Preview was one example: “We are increasingly concerned that the OCR is very high relative to a more neutral level in an economy where inflation pressures and capacity have in effect already normalised.”

Translation: The RBNZ has crashed the economy and urgently needs to cut the OCR

In the first week of October, ASB was expecting two 50bp cuts in 2024 (last week the RBNZ dropped the OCR by 50bp) and a further 25bp cut in February 2025- with one of their economists saying, “the largest regret now facing the RBNZ is moving too little, too late”.

Featured

Paynes Titus Excelsior ET Wins Sire of the Season Award

Paynes Titus Excelsior ET, an LIC bull bred by Brad Payne and Claire Brodie in the Waikato, has won the JT Thwaites Sire of the Season 2026 Award.

Hurst Is New Feds President

South Canterbury farmer Colin Hurst has been elected as the new president of Federated Farmers.

Dairy Exports Set to Reach $31 Billion by 2030, MPI Predicts

Dairy continues to be the mainstay of the country's primary export earnings.

China No Longer Just A Commodity Story - Luxon

China remains New Zealand’s biggest market, taking $23 billion of our exports, but it’s no longer a commodity story, says Prime Minister Christopher Luxon.

Jane Smith: Protecting Ravensdown's Co-operative Future for New Zealand Farmers

For Jane Smith, becoming a Ravensdown director has been a way she can actively contribute to something quite personal to her - protecting and strengthening a co-operative she deeply believes in.

Lactalis New Zealand Opens New Christchurch Distribution Centre

Lactalis New Zealand has opened a new distribution centre in Christchurch, marking a significant investment in the company's South Island supply chain capability.