Latest / Best of Business / Barry Soper: Newstalk ZB senior political correspondent on what the latest OCR cut means for the economy

Transcript

Barry Soper: Newstalk ZB senior political correspondent on what the latest OCR cut means for the economy · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks at be
• 0:12
  Speaker 1: Follow this and our wide range of podcasts now on iHeartRadio.
• 0:17
  Speaker 2: Tory Faro has delivered her valedictory speech. We will deal
• 0:20
  Speaker 2: with that shortlets thirteen away from five and Barries Sober,
• 0:22
  Speaker 2: Senior political Correspondence in studio. Okay, the ocr what did
• 0:26
  Speaker 2: you make of this?
• 0:27
  Speaker 3: Well, I think what it did do was vindicate the
• 0:30
  Speaker 3: two on the Monetary Statement Committee that they voted for
• 0:38
  Speaker 3: fifty basis points last time round. And really what it
• 0:41
  Speaker 3: shows is that the Reserve Bank has been lagging behind
• 0:44
  Speaker 3: the economy. What it should be doing is injecting impetus
• 0:49
  Speaker 3: into the economy. And I think what it goes to
• 0:52
  Speaker 3: show here that is just how powerful the Reserve Bank is.
• 0:56
  Speaker 3: I mean, you know, we heard Adrian All saying he
• 0:58
  Speaker 3: is going to engineer a recession. He didn't know he's
• 1:01
  Speaker 3: going to engineer a couple of recessions. It could be,
• 1:04
  Speaker 3: so I say good riddance, and now we've sort of
• 1:07
  Speaker 3: moved on from that. I've got to say. The Finance
• 1:09
  Speaker 3: Minister was beaming premiere to air after the announcement, saying
• 1:13
  Speaker 3: it's obviously great news for home owners with mortgages and
• 1:18
  Speaker 3: for the economy in general.
• 1:19
  Speaker 4: What we know is that over the next six months,
• 1:22
  Speaker 4: around half of mortgage debt will roll off a high
• 1:25
  Speaker 4: interest rate, giving those people an opportunity for a lower
• 1:28
  Speaker 4: interest rate. So what that suggests is that we are
• 1:31
  Speaker 4: not yet feeling the full effect of interest rate reductions
• 1:34
  Speaker 4: that have already happened, and we should be able to
• 1:36
  Speaker 4: see accelerating relief over the coming months. The reason I
• 1:39
  Speaker 4: care about lower interest rates is I know that in
• 1:41
  Speaker 4: every economy in the world where you have lower interest rates,
• 1:44
  Speaker 4: people do better, and that's what we were elected to see.
• 1:47
  Speaker 3: And stepping up to the mic just after Nichola Willis
• 1:50
  Speaker 3: was Labour's Barbara Edmonds. She was also enthusiastic about the
• 1:54
  Speaker 3: ocr drop today, saying she hopes it'll see inflation coming
• 1:58
  Speaker 3: down and making things generally more affordable.
• 2:01
  Speaker 5: I'm comfortable seeing inflation coming down so that people can
• 2:03
  Speaker 5: afford food on their table. My concern again is that
• 2:06
  Speaker 5: inflation is biting hard on kiwi's who are feeling it
• 2:09
  Speaker 5: the most, and that's really at the grocery and in
• 2:12
  Speaker 5: those administered costs which they can't avoid.
• 2:14
  Speaker 3: Yeah, and in the house itself. Heather with lower interest
• 2:19
  Speaker 3: rates and more money flowing. The question Labors Chris Hopkins
• 2:23
  Speaker 3: asked the Prime Minister today would seem to be a
• 2:25
  Speaker 3: foregone conclusion.
• 2:27
  Speaker 6: Mister speaker, when he's been out and about why hasn't
• 2:30
  Speaker 6: he been talking to the businesses who say that hiring
• 2:33
  Speaker 6: staff is not their primary constraint for growth, given that
• 2:36
  Speaker 6: only four percent are saying that, whilst sixty three percent
• 2:39
  Speaker 6: of businesses, according to Enzi, are saying their real problem
• 2:43
  Speaker 6: is not enough customers.
• 2:45
  Speaker 7: Well, the economy has been in a recession caused by
• 2:48
  Speaker 7: your reckless spending. You put the country into the biggest
• 2:51
  Speaker 7: recession in thirty five years. You've created the longest COVID
• 2:55
  Speaker 7: hangover of any in the western world. You actually made
• 2:58
  Speaker 7: sure that you tripled the debt for goodness sake, and
• 3:01
  Speaker 7: we now have a ten billion dollar interest bill. We're
• 3:03
  Speaker 7: cleaning up the labor government's mess. It's that simple, and I.
• 3:07
  Speaker 3: Guess we're all hoping that mess will be finally behind
• 3:10
  Speaker 3: us at some stage that the interst rate bill for
• 3:13
  Speaker 3: the government is going to take a lot more time
• 3:16
  Speaker 3: to clear.
• 3:17
  Speaker 2: How much trouble at luxem and willison with them with
• 3:19
  Speaker 2: a pole that puts them now in the twos.
• 3:21
  Speaker 3: Yes, I know, well just twenty nine point six percent.
• 3:26
  Speaker 3: You know, statistical margin of era is three percent. But
• 3:29
  Speaker 3: having said that, it's not a good result for the
• 3:31
  Speaker 3: government clearly, and I think it bears out what the
• 3:36
  Speaker 3: general mood of the populace has been saying that things
• 3:40
  Speaker 3: are not looking good. The cost of living's too much.
• 3:42
  Speaker 3: That's the main concern in this poll. The economy second,
• 3:46
  Speaker 3: and you know, the Labor Party is slightly ahead and
• 3:50
  Speaker 3: the center left would be the government of an election
• 3:53
  Speaker 3: was held today, but center left with the Maldi Party
• 3:57
  Speaker 3: and the Greens. The Greens lifted their rating as well,
• 4:00
  Speaker 3: I think, to twelve percent. So you know, I don't
• 4:02
  Speaker 3: know where they get all the support from, but they're
• 4:04
  Speaker 3: getting it and Whiston Peters is the biggest when they're.
• 4:07
  Speaker 2: In this two point five Look, it's protest numbers, right.
• 4:09
  Speaker 2: If it actually came to voting, I don't know that
• 4:11
  Speaker 2: the country is ready to re elect Chippy because Chippy
• 4:14
  Speaker 2: is part of the one of the biggest reasons that
• 4:16
  Speaker 2: we are in the situation that we're in.
• 4:18
  Speaker 3: But but do does the voter have the memory?
• 4:21
  Speaker 1: Yeah?
• 4:21
  Speaker 2: I think so, I think so. I think the greater
• 4:24
  Speaker 2: threat to I still think the Right block wins, but
• 4:26
  Speaker 2: I think the greater threat is that the right block
• 4:28
  Speaker 2: wins with the National Party much diminished and the two
• 4:31
  Speaker 2: supporting parties act in New Zealand. First figure, don't you think?
• 4:34
  Speaker 6: Well?
• 4:35
  Speaker 2: And that caused bat I mean, just think about the
• 4:36
  Speaker 2: mechanism here, the mechanics of this right that causes problems
• 4:39
  Speaker 2: because then you've got a whole bunch of National MPs
• 4:41
  Speaker 2: in in seats who losing on the list, who losing that,
• 4:43
  Speaker 2: and want to lose their positions, so then they.
• 4:45
  Speaker 3: Do what we're not going to do that the side
• 4:49
  Speaker 3: of the election has not doub about that.
• 4:52
  Speaker 2: Okay, silent, I'm just leaving a pause. No, leaving a
• 4:57
  Speaker 2: pause for dramatic effect.
• 4:58
  Speaker 3: It's like I said, though, whether the drop the ocr
• 5:01
  Speaker 3: by fifty basis points today? Was I right or was
• 5:05
  Speaker 3: I right?
• 5:06
  Speaker 1: No?
• 5:07
  Speaker 7: And yeah?
• 5:08
  Speaker 2: Any so then what did the Greens do? Tell me
• 5:10
  Speaker 2: about the Greens?
• 5:11
  Speaker 3: Well, Chloe Swarburg's been in the news a lot lately,
• 5:14
  Speaker 3: so today she was doing her best in Parliament, lecturing
• 5:17
  Speaker 3: the Prime Minister no less over the government's moves this
• 5:21
  Speaker 3: week against eighteen or nineteen year olds on the doll
• 5:24
  Speaker 3: iss She is.
• 5:25
  Speaker 8: Does the Prime Minister understand the basic mass that if
• 5:29
  Speaker 8: there are four job seekers to every job that is
• 5:32
  Speaker 8: available in this country, all of his cuts to job
• 5:36
  Speaker 8: seeker support couldn't hope to possibly punish people into ghost jobs,
• 5:43
  Speaker 8: but will only deepen poverty and homelessness.
• 5:47
  Speaker 7: Point of order, The Honorable David Simle, Now that's not
• 5:50
  Speaker 7: actually a question designed to get information for the public.
• 5:52
  Speaker 7: It's an attempt at theater and making a speech.
• 5:55
  Speaker 8: Well, let me be very clear, attempts at theater are
• 5:58
  Speaker 8: regular occurrency this out.
• 5:59
  Speaker 7: On this side of the government. We care about young people.
• 6:02
  Speaker 7: We're not prepared to actually just have them languishing and
• 6:05
  Speaker 7: consign to welfare like a Labor Greens government.
• 6:09
  Speaker 3: Well, the Pole says it could be one.
• 6:11
  Speaker 2: But Verry, thanks very much, very Sober Senior Political correspondent.
• 6:15
  Speaker 1: For more from News Talk st B, listen live on
• 6:18
  Speaker 1: air or online, and keep our shows with you wherever
• 6:21
  Speaker 1: you go with our podcasts on iHeartRadio.