Mini-Hoon: Jarrod Kerr on how low the OCR may have to go
Last night I spoke with Kiwibank Chief Economist Jarrod Kerr last night after the RBNZ’s 50 basis point cut in the OCR. He says the cash rate may need to go under 2% to get the economy going again. Here’s his full note on the decision.
We talked about:
* How interest rates need to be below neutral to encourage growth.
* The housing market’s stagnation was concerning for overall economic health.
* Whether communication from the Reserve Bank has led to confusion among businesses. Jarrod says it has.
* A new governor at the Reserve Bank may bring better leadership.
* The housing market is…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.