Latest / Early Edition with Ryan Bridge / Barbara Edmonds: Labour's Finance Spokesperson on the OCR falling to 2.5%, inflation

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Barbara Edmonds: Labour's Finance Spokesperson on the OCR falling to 2.5%, inflation · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: The OCRs dropped fifty points or a two and a
• 0:02
  Speaker 1: half percent full consensus with the Monetary Policy Committee, and
• 0:05
  Speaker 1: we may get another quarter hit before Christmas. Labour's finance
• 0:08
  Speaker 1: spokesperson Barbara Edmonds says the bank's taking a risk.
• 0:11
  Speaker 2: My concern is around the inflation, particularly being sticky, as
• 0:14
  Speaker 2: it might come down next year, but those administered costs
• 0:17
  Speaker 2: that we are seeing are quite a concern for me.
• 0:19
  Speaker 1: She's with me now. Good morning, Good morning, Ryan. Good
• 0:23
  Speaker 1: to have you on the show. As always, did they
• 0:24
  Speaker 1: make the wrong call?
• 0:27
  Speaker 2: I think they made the right call given the data
• 0:29
  Speaker 2: that they've got before them, and even in their media
• 0:32
  Speaker 2: statement they did talk about those inflationary risks, but ultimately
• 0:36
  Speaker 2: right now they believe they're a spare capacity in the economy,
• 0:40
  Speaker 2: which is why they had to cut interest rates. Have
• 0:43
  Speaker 2: indicated a potential service put and to me it's a
• 0:47
  Speaker 2: direct response to the economic damage caused by Christopher Luxem.
• 0:50
  Speaker 1: You're talking about the inflation problem, domestic inflation. Council rates
• 0:54
  Speaker 1: always a big one. Are you going to support a
• 0:56
  Speaker 1: rates cap? You know, what are you going to do
• 0:58
  Speaker 1: to keep that down? If inflation is such.
• 1:00
  Speaker 2: A worry for you, we can to see where the
• 1:03
  Speaker 2: government gets to with their work on that, and we
• 1:06
  Speaker 2: want to see the detail. If it's a good policy proposal,
• 1:09
  Speaker 2: we know that it will help bring rates down, we
• 1:11
  Speaker 2: will provide the support where we need to.
• 1:14
  Speaker 1: What does a good proposal look like.
• 1:17
  Speaker 2: And again they've got a group working on that. We
• 1:19
  Speaker 2: want to see what that looks like. And you do
• 1:21
  Speaker 2: need the detail about that because obviously any policy detail
• 1:25
  Speaker 2: may have other consequences. So we really hope the governments
• 1:28
  Speaker 2: when they do come up with a response to it,
• 1:31
  Speaker 2: that it be something that we can support because we
• 1:33
  Speaker 2: know that ratepayers are hurting.
• 1:36
  Speaker 1: If they say, look, we want to elect capita inflation,
• 1:41
  Speaker 1: would you be on board with that?
• 1:44
  Speaker 2: And it depends on then how the councils are going
• 1:47
  Speaker 2: to be supported to pay for the infrastructure that they need.
• 1:50
  Speaker 2: So there are pros and cons to that, because councils
• 1:52
  Speaker 2: obviously need money for historical water infrastructure that hasn't been
• 1:56
  Speaker 2: kept up to date. So again we're open to apporting
• 2:00
  Speaker 2: the government, but we need to see the detail and
• 2:03
  Speaker 2: we do look forward to that.
• 2:04
  Speaker 1: You've said this is down to National's economic mismanagement and
• 2:08
  Speaker 1: its talent and hand basket stuff. When labor left office
• 2:11
  Speaker 1: in fation was six to seven percent, the ocr was
• 2:14
  Speaker 1: five and.
• 2:14
  Speaker 2: A half, and we were coming off the back held
• 2:18
  Speaker 2: some really high tradable infation, so real high global prices.
• 2:24
  Speaker 2: But ultimately, since the government has come in, the economy
• 2:28
  Speaker 2: is going backwards. We've lost thirty six thousand jobs since
• 2:31
  Speaker 2: they took over. We've had two seven hundred business liquidations,
• 2:35
  Speaker 2: and Kiwis are leaving overseas like two hundred per day,
• 2:38
  Speaker 2: So the economy has gone backwards. Christall lacks and promised
• 2:41
  Speaker 2: to make it better, but he's made it worse.
• 2:43
  Speaker 1: Hey, Barbara, A lot of people were impressed by your
• 2:46
  Speaker 1: performance at the mood of the boardroom the other week.
• 2:48
  Speaker 1: Have you had much good feedback about that?
• 2:51
  Speaker 2: I have, and it was an interesting time time to
• 2:56
  Speaker 2: be there. And then ultimately I think it was a
• 2:59
  Speaker 2: very strong message to Nikola Willis and for Christopher Laxling
• 3:03
  Speaker 2: that you can keep saying gross, gross growth, but you
• 3:05
  Speaker 2: actually that they actually want to see action on net All.
• 3:08
  Speaker 1: Right, Barbara, appreciate your time this morning. Thanks for being
• 3:10
  Speaker 1: on the show. Barbara Edmonds, whose Labour's finance spokesperson. For
• 3:14
  Speaker 1: more from early edition with Ryan Bridge, listen live to
• 3:17
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• 3:20
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