Latest / The SME Stream / Barry Soper: Newstalk ZB senior political correspondent on the OCR being cut by 50 basis points

Transcript

Barry Soper: Newstalk ZB senior political correspondent on the OCR being cut by 50 basis points · The SME Stream

• 0:00
  Speaker 1: Very so, per senior political correspondence with US now high
• 0:02
  Speaker 1: Barry Good afternoon. Is the government claiming credit for the
• 0:05
  Speaker 1: inflation coming down sufficiently to have an OCR cut again?
• 0:08
  Speaker 2: Well, your cockles will be warmed, no doubt, Heather, and
• 0:12
  Speaker 2: it seems that we all should be feeling much warmer
• 0:15
  Speaker 2: as a result of this fifty point drop. Nikola Willis
• 0:19
  Speaker 2: cheerfully gave us one example. A family with a five
• 0:22
  Speaker 2: hundred dollars five hundred thousand dollars mortgage on a twenty
• 0:25
  Speaker 2: five year term would expect to be better off by
• 0:29
  Speaker 2: about one hundred and eighty bucks a week, she says.
• 0:31
  Speaker 2: But that's providing the bank drops the rate from seven
• 0:34
  Speaker 2: to five point seven five percent. I don't see banks
• 0:38
  Speaker 2: dropping rates that much. I haven't seen them come down
• 0:41
  Speaker 2: that much. The average mortgage interstraight in New Zealand is
• 0:44
  Speaker 2: just under eight percent, seven point ninety four percent.
• 0:47
  Speaker 1: Is this floating?
• 0:49
  Speaker 2: No, that's that's the average floating. Sorry, and the fixed
• 0:53
  Speaker 2: rate is five point nine percent. But if you listen
• 0:57
  Speaker 2: to Adrian or it's both good and uns certain news,
• 1:01
  Speaker 2: with all saying there's likely to be another fifty basis
• 1:04
  Speaker 2: point cut in the OCR early next year. But warns
• 1:09
  Speaker 2: of a slow recovery.
• 1:10
  Speaker 3: Economic growth is expected to recover during twenty twenty five
• 1:14
  Speaker 3: as lower interest rates encourage investment and other spending. Employment growth, however,
• 1:20
  Speaker 3: it is expected to remain weak until at least mid
• 1:23
  Speaker 3: twenty twenty five, and for some financial stress will take
• 1:27
  Speaker 3: time to ease. The Monetary Policy Committee agreed that having
• 1:31
  Speaker 3: consumer price inflation close to the midpoint of its target
• 1:34
  Speaker 3: ban puts US in the best position to respond to
• 1:37
  Speaker 3: any shocks to inflation looking forward.
• 1:41
  Speaker 2: So that's good and sort of good news. I suppose,
• 1:46
  Speaker 2: of course, the government like you indicated earlier as putting
• 1:49
  Speaker 2: a very glossy picture or painting a glossy picture on
• 1:53
  Speaker 2: the latest fall. It's a year since they were sworn in.
• 1:57
  Speaker 2: Today the beginning their first day to day, mister nicol
• 2:00
  Speaker 2: Will says, they've delivered what they said they would.
• 2:03
  Speaker 3: We promised that with careful fiscal management, we'd get inflation
• 2:06
  Speaker 3: back under control.
• 2:07
  Speaker 2: We have. We promised that when inflation was back under control,
• 2:10
  Speaker 2: interest rates would drop.
• 2:12
  Speaker 1: They are.
• 2:12
  Speaker 3: We promised we would deliver fiscally neutral tax relief to
• 2:16
  Speaker 3: three point five million New Zealanders.
• 2:18
  Speaker 2: We have.
• 2:18
  Speaker 3: And for those who say, oh well, it's just inevitable
• 2:21
  Speaker 3: that inflation and interest rates come down. Just look over
• 2:24
  Speaker 3: the ditch.
• 2:25
  Speaker 2: Yeah, well, the Ossie rate is about the same as
• 2:28
  Speaker 2: ours two point eight percent. And mortgage rates, She's right,
• 2:33
  Speaker 2: the mortgage rates are still pretty high in Australia, about
• 2:37
  Speaker 2: seven point or seven and a half percent. So you know,
• 2:41
  Speaker 2: New Zealand's are doing slightly better than Australia but not significantly.
• 2:45
  Speaker 1: Well, what on the are you measuring it on the OCR.
• 2:48
  Speaker 2: On the mortgage rates when the OCR there? Yeah, I'm
• 2:50
  Speaker 2: not quite sure.
• 2:51
  Speaker 1: Jesus has taken us a while to do slightly better
• 2:53
  Speaker 1: than they've been doing better than us the whole other time.
• 2:55
  Speaker 2: That's right.
• 2:56
  Speaker 1: Hey, so tomorrow is it tomorrow or is it today?
• 2:58
  Speaker 1: That it was the first day in they begin.
• 3:01
  Speaker 2: Their first day yere today? It was a year ago. Yeah,
• 3:04
  Speaker 2: And I know whether you saw the Winston Peters interview
• 3:06
  Speaker 2: in the Herald today, it reminded me of just what
• 3:11
  Speaker 2: the situation was like in the lead up to the
• 3:13
  Speaker 2: last election when you came to particularly David Seymour and
• 3:18
  Speaker 2: Winston Peters. Seymour had described Winston Peters as a crook
• 3:24
  Speaker 2: and the least trustworthy people person in New Zealand Politics,
• 3:28
  Speaker 2: and Peters responded and kind of calling Seymour a political
• 3:33
  Speaker 2: cuckold from EPSOM and comparing him to Chihuahua barking at
• 3:38
  Speaker 2: the front gate. And they are now sitting around the
• 3:42
  Speaker 2: cabinet table in coalition. But it was interesting also I
• 3:46
  Speaker 2: thought that you remember the prime or not the Prime minister.
• 3:50
  Speaker 2: Then the leader of the opposition, Chris Luxon, was constantly
• 3:53
  Speaker 2: being asked whether he would sit down with Winston Peters
• 3:57
  Speaker 2: after the election. He acquiver cad all the way through
• 4:01
  Speaker 2: and then finally he said that yes he would pick
• 4:06
  Speaker 2: up the phone to Winston Peters if necessary. And it's
• 4:10
  Speaker 2: interesting to me to see these three personalities and who
• 4:14
  Speaker 2: is actually getting on better at the moment. And I
• 4:17
  Speaker 2: suggest that Winston Peters is getting on much better with
• 4:19
  Speaker 2: Chris Luxon, maybe because he's overseas or he's been overseas
• 4:23
  Speaker 2: for much of the past year than what David Seymour
• 4:26
  Speaker 2: now I reckon.
• 4:26
  Speaker 1: Because he's he's just more flexible on his principles.
• 4:30
  Speaker 2: Well, you know, he has been round of politics and
• 4:34
  Speaker 2: a long more tea.
• 4:35
  Speaker 1: He's much more pragmatic, isn't he He is.
• 4:37
  Speaker 2: More pragmatic and David Seymour, he knows what he wants
• 4:42
  Speaker 2: and he sets out to get it. But sometimes he
• 4:44
  Speaker 2: obviously gets under one not sometimes quite a lot gets
• 4:48
  Speaker 2: under Chris Luckson's skin.
• 4:50
  Speaker 1: Tell you what, Let's have a look at the next
• 4:51
  Speaker 1: election though, see which of these two parties goes up
• 4:54
  Speaker 1: or retains as much of their their vote show and
• 4:57
  Speaker 1: we'll know which is the right approach to take. Hey,
• 4:59
  Speaker 1: so when is this David Seymore Willy Jackson debate going
• 5:01
  Speaker 1: to happen?
• 5:02
  Speaker 2: It's not going to happen. Well, what David Seymour has said,
• 5:05
  Speaker 2: and I've had messages to him, to Dan, he's responded
• 5:09
  Speaker 2: that he's not going to debate Willie Jackson unless Willie
• 5:13
  Speaker 2: Jackson apologize, apologizes for calling him a liar. Well, Jackson
• 5:18
  Speaker 2: refused to do that in the house, and remember he
• 5:21
  Speaker 2: has kicked out by Jerry Brownlee and Seymour would argue
• 5:25
  Speaker 2: that you've got to have better parliamentary standards. And the
• 5:28
  Speaker 2: factor is, Heather, it's quite easy for Willy Jackson to
• 5:32
  Speaker 2: get a debate with David Seymour simply by asking him
• 5:36
  Speaker 2: a question.
• 5:37
  Speaker 1: In the house.
• 5:38
  Speaker 2: In the House, and he's able to do that. Do
• 5:40
  Speaker 2: you know he's only done it once in the past year. Well,
• 5:43
  Speaker 2: I suggest to Willie he gets his thinking cap on,
• 5:46
  Speaker 2: sits down and comes up with a good question and
• 5:48
  Speaker 2: they can have a debate to and fro in the House.
• 5:51
  Speaker 1: Right advice, actually, Barry. Thank you very much, barrisso for
• 5:53
  Speaker 1: seeing your political correspondent.