Latest / Best of Business / Barry Soper: Newstalk ZB senior political correspondent on the OCR being cut by 50 basis points

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Barry Soper: Newstalk ZB senior political correspondent on the OCR being cut by 50 basis points · Best of Business

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  Speaker 2: So per Senior political Correspondence with US Now Hi, Barry,
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  Speaker 2: Good afternoon. Is the government claiming credit for the inflation
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  Speaker 2: coming down sufficiently to have an OCR cut again?
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  Speaker 3: Well, your cockles will be warmed, no doubt hither and
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  Speaker 3: it seems that we all should be feeling much warmer
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  Speaker 3: as a result of this fifty point drop. Nikola Willis
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  Speaker 3: cheerfully gave us one example. A family with a five
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  Speaker 3: hundred dollars five hundred thousand dollars mortgage on a twenty
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  Speaker 3: five year term would expect to be better off by
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  Speaker 3: about one hundred and eighty bucks a week, she says.
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  Speaker 3: But that's providing the bank drops the rate from seven
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  Speaker 3: to five point seven five percent. I don't see bank
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  Speaker 3: dropping rates that much. I haven't seen them come down
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  Speaker 3: that much. The average mortgage interstraight in New Zealand is
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  Speaker 3: just under eight percent, seven point nine to four percent.
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  Speaker 2: Is this floating?
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  Speaker 3: No, that's that's the average floating. Sorry, and the pick
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  Speaker 3: strate is five point nine percent. But if you listen
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  Speaker 3: to Adrian or it's both good and uncertain news, with
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  Speaker 3: All saying there's likely to be another fifty basis point
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  Speaker 3: cut in the OCR early next year, but warns of
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  Speaker 3: a slow recovery.
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  Speaker 4: Economic growth is expected to recover during twenty twenty five
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  Speaker 4: as lower interest rates encourage investment and other spending employment growth, however,
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  Speaker 4: it is expected to remain weak until at least mid
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  Speaker 4: twenty twenty five, and for some financial stress will take
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  Speaker 4: time to ease. The Monastry Policy Committee agreed that having
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  Speaker 4: consumer price inflation close to the midpoint of its target
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  Speaker 4: ban puts US in the best position to respond to
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  Speaker 4: any shocks to inflation looking forward.
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  Speaker 3: So that's good and sort of good news. I suppose,
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  Speaker 3: of course, the government like you indicated earlier as putting
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  Speaker 3: a very glossy picture, painting a glossy picture on the
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  Speaker 3: latest fall. It's a year since they were sworn in
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  Speaker 3: today will they're beginning their first day to day. Finance
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  Speaker 3: Minister Nicol Willer says they've delivered what they said they would.
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  Speaker 5: We promised that with careful fiscal management, we'd get inflation
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  Speaker 5: back under control.
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  Speaker 3: We have.
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  Speaker 5: We promised that when inflation was back under control, interest
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  Speaker 5: rates would drop. They are we promised we would deliver
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  Speaker 5: fiscally neutral tax relief to three point five million New Zealanders.
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  Speaker 3: We have.
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  Speaker 5: And for those who say, oh, well it's just inevitable
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  Speaker 5: that inflation and interest rates come down, just look over
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  Speaker 5: the ditch.
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  Speaker 3: Yeah, well, the Ossie rate is about the same as
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  Speaker 3: ours two point eight percent. And mortgage rates, She's right,
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  Speaker 3: the mortgage rates are still pretty high in Australia, about
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  Speaker 3: seven point or seven and a half percent. So you know,
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  Speaker 3: New Zealand's are doing slightly better than Australia but not significantly.
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  Speaker 2: Well what on the are you measuring it on the
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  Speaker 2: OCR on the.
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  Speaker 3: Mortgage rates when the OCR there, Yeah, not quite sure, Jess.
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  Speaker 2: Take us a while to do slightly better than they've
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  Speaker 2: been doing better than us the whole other time.
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  Speaker 3: That's right.
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  Speaker 2: Hey, so tomorrow is it tomorrow or was it today
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  Speaker 2: that it was the first day in office?
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  Speaker 3: So beginning their first day today was a year ago.
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  Speaker 3: Yeah see, And I know whether you saw the Winston
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  Speaker 3: Peters interview in the Herald today that it reminded me
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  Speaker 3: of just what the situation was like and the lead
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  Speaker 3: up to the last election when you came to particularly
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  Speaker 3: David Seymour and Winston Peters. Seymour had described Winston Peters
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  Speaker 3: as a crook and the least trustworthy people person in
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  Speaker 3: New Zealand politics, and Peters responded and kind of calling
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  Speaker 3: Seymour a political cuckold from EPSOM and comparing him to
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  Speaker 3: chihuahua barking at the front gate. And they are now
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  Speaker 3: sitting around the cabinet table in coalition. But it was
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  Speaker 3: interesting also I thought that you remember the prime or
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  Speaker 3: not the Prime Minister. Then the leader of the opposition,
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  Speaker 3: Chris Luxon, was constantly being asked whether he would sit
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  Speaker 3: down with Winston Peters after the election. He equivocated all
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  Speaker 3: the way through and then finally he said that yes,
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  Speaker 3: he would pick up the phone to Winston Peters if necessary.
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  Speaker 3: And it's interesting to me to see these three personalities
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  Speaker 3: and who is actually getting on better at the moment.
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  Speaker 3: And I suggest that Winston Peters is getting on much
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  Speaker 3: better with Chris Luckxon, maybe because he's overseas or he's
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  Speaker 3: been overseas for much of the past year than what
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  Speaker 3: David Seymour now I reckon.
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  Speaker 2: Because he's just more flexible on his principles.
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  Speaker 3: Well, you know, he has been round of politics and
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  Speaker 3: a long tea.
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  Speaker 2: He's much more pragmatic, is he?
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  Speaker 3: He is more pragmatic and David Seymour he knows what
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  Speaker 3: he wants and he sets out to get it. But
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  Speaker 3: sometimes he obviously gets under one not sometimes quite a
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  Speaker 3: lot gets under Chris Luckson's skin.
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  Speaker 2: Tell you what, Let's have a look at the next
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  Speaker 2: selection though, see which are these two parties goes up
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  Speaker 2: or retains as much of their vote? Show yes, and
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  Speaker 2: we'll know which is the right approach to take. Hey,
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  Speaker 2: so when is this David Seymour Willy Jackson debate going
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  Speaker 2: to happen?
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  Speaker 3: It's not going to happen. Well, what David Seymour has said,
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  Speaker 3: and I've had messages to him, to Dan, he's responded
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  Speaker 3: that he's not going to debate Willy Jackson unless Willie
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  Speaker 3: Jackson apologize, apologizes for calling him a liar. Well, Jackson
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  Speaker 3: refused to do that in the house, and you remember
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  Speaker 3: he has kicked out by Jerry Brownlee and Seymour would
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  Speaker 3: argue that you've got to have better parliamentary standards and
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  Speaker 3: the factors. Heather, it's quite easy for Willy Jackson to
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  Speaker 3: get a debate with David Seymour simply by asking him
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  Speaker 3: a question in the house. In the house, and he's
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  Speaker 3: able to do that. Do you know he's only done
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  Speaker 3: it once in the past year. Well, I suggest to
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  Speaker 3: Willie he gets his thinking cap on, sits down and
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  Speaker 3: comes up with a good question and they can have
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  Speaker 3: a debate to and fro in the house.
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  Speaker 2: Right advice, Shally Berry, Thank you very much, barisso for
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  Speaker 2: Senior political correspondent.
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