Latest / Best of Business / Perspective with Heather du Plessis-Allan: Was Kiwibank's Jarrod Kerr proven right?

Transcript

Perspective with Heather du Plessis-Allan: Was Kiwibank's Jarrod Kerr proven right? · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from news Talk Set be
• 0:12
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• 0:16
  Speaker 2: The longer that this economic funk that we find ourselves
• 0:19
  Speaker 2: and goes on, the more that Jared kurve Kiwi Bank
• 0:21
  Speaker 2: is being proven right, isn't he? And we had a
• 0:24
  Speaker 2: cut today it was twenty five basis points down to
• 0:26
  Speaker 2: three percent now with the expectation that we will maybe
• 0:29
  Speaker 2: get down to two point five percent before this thing
• 0:31
  Speaker 2: bottoms out. Two point five percent is where Jared Kerr
• 0:34
  Speaker 2: has been saying four months that we need to get to.
• 0:37
  Speaker 2: But even though he's been saying it, eye locked it
• 0:39
  Speaker 2: and looked like at least September last year, if not earlier,
• 0:42
  Speaker 2: even though he's been saying it since then, the Reserve
• 0:44
  Speaker 2: Bank is only just caught up with him. Up to now,
• 0:46
  Speaker 2: they've been talking about two point seventy five three percent
• 0:49
  Speaker 2: maybe now. What you should take from that is that
• 0:52
  Speaker 2: the Reserve Bank is surprised by what Jared Kerr and
• 0:55
  Speaker 2: you could argue many of us have been seeing for ages,
• 0:57
  Speaker 2: which is that the economy is properly, properly, properly stuffed,
• 1:02
  Speaker 2: like stuffed enough that they should be cutting a lot
• 1:05
  Speaker 2: more than they are. Why this is a surprise to
• 1:08
  Speaker 2: them is beyond me, because you just need to look
• 1:10
  Speaker 2: at what's going on with business today to see at
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  Speaker 2: Fletcher a massive loss, spark profit down, massively, huge job
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  Speaker 2: cuts there, kitchen things in receivership. Now, some of that
• 1:21
  Speaker 2: will be absolutely because of poor decisions, but some of
• 1:24
  Speaker 2: that is because we are in an economic funk come
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  Speaker 2: recession as bad as anything in my entire life. I mean,
• 1:29
  Speaker 2: the last time we saw anything this bad was the eighties,
• 1:32
  Speaker 2: some indicators say the seventies. So why the Reserve Bank
• 1:35
  Speaker 2: hasn't cut more, including today, is baffling. They debated it,
• 1:39
  Speaker 2: by the way, it did occur to them. Four of
• 1:41
  Speaker 2: them voted for the twenty five percent of the twenty
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  Speaker 2: five basis point cut that we got. Two of them
• 1:46
  Speaker 2: voted for a double cut of fifty basis points. Two
• 1:49
  Speaker 2: of them can see what the rest of us can see,
• 1:51
  Speaker 2: but the four wins. Unfortunately, the fact that they cut
• 1:54
  Speaker 2: today and indicated they will cut more than they had
• 1:56
  Speaker 2: previously expected to cut is a sign that they made
• 1:59
  Speaker 2: a mistake when they didn't cut last time and opted
• 2:03
  Speaker 2: to hold instead. The Reserve Bank is once again caught
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  Speaker 2: on the hop making the economy worse than it needs
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  Speaker 2: to be if only Jared Kerr was running the joint.
• 2:12
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