Retirement Affordability
Financial Regulation

Interest Rates

Well, Roger Kerr is quoted - lets hope he was misquoted - that the RB would be ill advised to increase rates as it would have no impact on inflation, but would push the New Zealand dollar higher, causing more problems for exporters and the economy. Link.

Another interest rate rise would have no effect on inflation? Hmmm. Well, if interest rates have no effect we might as well have them a lot lower. Actually, I suspect this is a reflection of the usual, dismal state of financial journalism in NZ.


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I think the most generous way to interpret Kerr's statement is that inflation had more to do with international factors, such as the price of energy, than local economic conditions, ie, the economy isnt overheating, growth is low etc.

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