Alan Bollard is talking sense, unlike his predecessor Don Brash who now leads the National Party running into Sept 17th national election.
$this->bbcode_second_pass_quote('New Zealand Herald', 'R')eserve Bank Governor Alan Bollard left the official cash rate unchanged at 6.75 per cent today, despite the bank projecting inflation will nudge 4 per cent next year.
He said rates may have to be pushed higher if the effects of a "temporary" rise in oil prices persisted, adding that there was no prospect of a cut in rates in the foreseeable future.
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NZ Reserve Bank talks sense
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NZ Reserve Bank talks sense
by rogerhb » Thu 15 Sep 2005, 13:37:48
Brash is predicting 20 billion dollar surplus over the next three years and will fund tax cuts. He will borrow to build more roads, and comes up with such rubbish as "because they are capital projects you should borrow", somehow assuming that it's impossible to get massively in debt if you are building something physical.
Helen Clark, Labour, last night said her biggest fear is the country getting into debt again. Well done that man, er, sorry, lady.
Bollard said current oil shock has surpassed the 1970s and is more like the 1980s, and because of that does not expect any relief in oil prices for the next couple of years, and is not even promising that!
Reporter on National Radio said, and that means interest rates are going in only one direction, base rate 6.75%, floating mortgages currently just over 9%.
Inflation to hit 4% but Bollard holds rates
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Re: NZ Reserve Bank talks sense
by SHiFTY » Thu 15 Sep 2005, 16:38:51
Yep looks like Bollard is a sensible chappie. Don't overheat the economy but also don't crush the life out of it.
I just really hope Brash doesn't get in. His policies would have been great in about 1984.
It will be a real shame if Auckland STILL doen't get a viable rail system...
I just really hope Brash doesn't get in. His policies would have been great in about 1984.
It will be a real shame if Auckland STILL doen't get a viable rail system...
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Re: NZ Reserve Bank talks sense
by MicroHydro » Sat 17 Sep 2005, 12:31:03
Don Brash appears to be a vote short - Huzzah!
"The world is changed... I feel it in the water... I feel it in the earth... I smell it in the air... Much that once was, is lost..." - Galadriel
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Re: NZ Reserve Bank talks sense
by rogerhb » Sat 17 Sep 2005, 14:45:08
$this->bbcode_second_pass_quote('MicroHydro', 'D')on Brash appears to be a vote short - Huzzah!
Not quite as close as that, it was "one seat"!
Also the coalition partnership options aren't as good for Brash.
It's quite remarkable the petty politics, such as United Future (3 seats) refusing to work with Labour (50 seats) if they give a cabinet post to Greens (5 seats).
Clark, as current PM is the caretaker government, and I think technically she may be given the first option to build a coalition. (certainly that was the rule in the UK, if no majority, current party given option of trying to survive a no-confidence vote)
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