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Ryan Bridge: A debate on interest rates · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: I was having a good old debate with a mate
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  Speaker 1: at the weekend about interest rates, because we're both at
• 0:03
  Speaker 1: the age where mortgages are unfortunately a thing in Auckland,
• 0:07
  Speaker 1: quite a big and annoying thing. Now, this made of
• 0:10
  Speaker 1: mine knows a bit more about the stuff than I do.
• 0:12
  Speaker 1: Watches the markets very closely for his job, and he's
• 0:15
  Speaker 1: worried about the middle of the year. Potentially this recovery,
• 0:19
  Speaker 1: that's what we're going to officially call it, yet coming
• 0:22
  Speaker 1: to a bit of a standstill or an abrupt holt.
• 0:24
  Speaker 1: We've spoken before about elections putting the kai bosh on
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  Speaker 1: growth a bit, people hold back weak to see what happens.
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  Speaker 1: We've spoken about Bill English's comments about our recovery unlike
• 0:34
  Speaker 1: across the Ditch coming in spite of a rebound in
• 0:38
  Speaker 1: house prices. In Australia, everything's hot, the weather, house prices, inflation, growth, employment,
• 0:45
  Speaker 1: everything's just hot, hot, hot. It's lightly on a different
• 0:48
  Speaker 1: hemisphere to us. There was a good podcast talking about
• 0:52
  Speaker 1: some of this of interest it's called with the Westpac Economists. Now,
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  Speaker 1: the RBA's rate is now three point eight five percent
• 0:58
  Speaker 1: ours two point twenty five. It's been about fifteen years
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  Speaker 1: since there has been such a massive gap between the
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  Speaker 1: two of them. We usually cycle closer together most of
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  Speaker 1: the time, but we've drifted apart to the point where
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  Speaker 1: one is so far over the hill we actually can't
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  Speaker 1: see each other anymore. This is all by design, of course.
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  Speaker 1: We have been way more aggressive engineered the recession to
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  Speaker 1: crash inflation. They went a lot softer to take into
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  Speaker 1: account employment. They have a dual mandate. The Coalition got
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  Speaker 1: rid of ours. The Aussies are now upping rates again
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  Speaker 1: because their inflation is taking off again. Ours has a
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  Speaker 1: mild case of fever, but nothing like their is sitting
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  Speaker 1: at nearly four percent now. The question anyone thinking about
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  Speaker 1: this stuff with a mortgage is asking themselves is this,
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  Speaker 1: would you swallow a bit of inflation to have an
• 1:49
  Speaker 1: economy that's actually firing? In other words, in future, would
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  Speaker 1: you rather this was handled the Aussie way or the
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  Speaker 1: Kiwi way? And crucially, can our economy kick back? Intogear
• 2:02
  Speaker 1: without its usual rocket fuel runaway house prices. For more
• 2:07
  Speaker 1: from early edition with Ryan Bridge. Listen live to News
• 2:11
  Speaker 1: Talks at b from five am weekdays, or follow the
• 2:14
  Speaker 1: podcast on iHeartRadio.