Andrew Dickens: The Reserve Bank and the Government need to work in tandem

Early Edition with Ryan Bridge · Jul 9, 2025 · 1m · transcript

For a while now I’ve been thinking that the Reserve bank and the Government are working at cross purposes for the country.

Yesterday the Reserve Bank kept the OCR at the same rate it’s at. The reason: increasing inflation and little or no growth in GDP.

Now the Government has an agenda of growth, growth, growth.

So reduced interest rates could help stimulate the economy that has some very flat spots in between primary produce and tourism.

But the Reserve Bank's purview is inflation, and low interest rates fire on consumerism and inflation. So, the rate isn't lowered.

It's fair to say the…