Latest / Best of Business / Perspective with Heather du Plessis-Allan: Here's hoping this Reserve Bank Governor does a better job

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Perspective with Heather du Plessis-Allan: Here's hoping this Reserve Bank Governor does a better job · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from news Talk st be
• 0:12
  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: So we've had the first monetary policy decision from the
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  Speaker 2: new Reserve Bank governor. And it's not really until you've
• 0:21
  Speaker 2: got a new captain in charge that you realize just
• 0:23
  Speaker 2: how little confidence you had left in the last lot.
• 0:27
  Speaker 2: I mean, look, it's let's be fair, it's early days
• 0:29
  Speaker 2: for Anna Bremen. We will judge her by what she
• 0:31
  Speaker 2: does from here on in, but she does start with
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  Speaker 2: a clean slate without us reading into her decision and
• 0:37
  Speaker 2: second guessing everything because of a poor track record, and
• 0:40
  Speaker 2: that I would say is an absolutely welcome change from
• 0:44
  Speaker 2: just a few weeks ago before she took the helm.
• 0:46
  Speaker 2: Her take is that inflation is fine. Yeah, it's sitting
• 0:49
  Speaker 2: a little high at the moment three point one. That's
• 0:51
  Speaker 2: outside the target band, but it will fall back within
• 0:53
  Speaker 2: the band by this time next year. The economy is improving.
• 0:58
  Speaker 2: The green shoots that were previously limited to the regions
• 1:01
  Speaker 2: and certain industries are becoming more widespread. Households are getting
• 1:04
  Speaker 2: more money in their pockets, but they still are cautious
• 1:07
  Speaker 2: and that's a problem because unless they're confident enough to spend.
• 1:11
  Speaker 2: They will hold back the economic recovery from what it
• 1:13
  Speaker 2: could could potentially be. But and this is probably the
• 1:16
  Speaker 2: bit that you've you've been the most interested in been
• 1:18
  Speaker 2: waiting for. They will start raising the ocr faster than
• 1:22
  Speaker 2: we thought so. Previously they had the official cash rate
• 1:25
  Speaker 2: projection going from two point two percent in March to
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  Speaker 2: two point three percent in December. That's now come forward.
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  Speaker 2: It's now two point three percent in June and two
• 1:33
  Speaker 2: point four percent in December. In their predictions, the first
• 1:36
  Speaker 2: hike will still most likely be in December, but the
• 1:40
  Speaker 2: chances of it being in September just went up. It's
• 1:42
  Speaker 2: not a major concern, it's not a major correction. It's
• 1:45
  Speaker 2: not really a game changer for anyone. But it is
• 1:47
  Speaker 2: bringing the inevitable closer still for now. It's nice to
• 1:50
  Speaker 2: have a change at the top, isn't it. And here's
• 1:52
  Speaker 2: hoping this governor does a better job than the last one.
• 1:54
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