Latest / Best of Business / Jenee Tibshraeny: NZ Herald Wellington business editor on the Reserve Bank's OCR statement

Transcript

Jenee Tibshraeny: NZ Herald Wellington business editor on the Reserve Bank's OCR statement · Best of Business

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  Speaker 2: Now.
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  Speaker 3: Jane Tibcherini is The Herald's Wellington Business editor and with us. Now,
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  Speaker 3: how your name? Hey, Heather Ocra. Uncertainty still the case,
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  Speaker 3: isn't it?
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  Speaker 2: Very much? So? The picture that I have in my
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  Speaker 2: mind is of some sort of frantic office worker trying
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  Speaker 2: to explain things by referring to a pin board, sort
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  Speaker 2: of drawing strings between pieces of paper, sort of saying,
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  Speaker 2: you know, if this happens, this could happen, and that
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  Speaker 2: could happen, but maybe not. And here's another scenario that
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  Speaker 2: was kind of my read through the Reserve Bank's quarterly
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  Speaker 2: Monetary Policy statement and its commentary today in the press conference.
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  Speaker 2: So cut the ocr by twenty five basis points, as expected,
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  Speaker 2: but then it really highlighted the uncertainty and the global outlook,
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  Speaker 2: largely down to Donald Trump. I think it referred to
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  Speaker 2: the word uncertain one hundred sixty four times and it's
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  Speaker 2: sixty two page document.
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  Speaker 1: News That's a lot, isn't it.
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  Speaker 3: What's going on with the cuts? Because we all assumed
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  Speaker 3: that there was just going to be a rate it
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  Speaker 3: cuts at a rate of knots. But it doesn't look
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  Speaker 3: very much like that at all.
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  Speaker 2: Now, yeah, look, it's very much open for interpretation. You
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  Speaker 2: could argue that Christian hawks be delivered a hawkish statement,
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  Speaker 2: and that is because the Monetary Policy Committee was divided
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  Speaker 2: for only the second time ever on what to do
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  Speaker 2: with the OCR. One person thought it should stay at
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  Speaker 2: three point five percent, the others thought it should be cut. Yeah,
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  Speaker 2: so you know, so there's that factor. Also, the commentary
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  Speaker 2: today in the press conference really suggested it there was
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  Speaker 2: a bit of uncertainty. I think Christian said that, you know,
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  Speaker 2: there was no clear bias, so basically at the next
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  Speaker 2: meeting he couldn't say, you know, which way he was
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  Speaker 2: leaning in terms of what the committee would do with
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  Speaker 2: the OCR. But then the thing that was a bit
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  Speaker 2: puzz was the projections in the statement suggested that the
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  Speaker 2: OCR would still be cut another couple of times. So
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  Speaker 2: you know, you're piecing together bits of information that that
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  Speaker 2: tells slightly different stories. So the only real story that
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  Speaker 2: this all tells is that we don't know.
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  Speaker 3: I know, Well, if they don't know, then I think
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  Speaker 3: we can say it's okay that we don't know because
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  Speaker 3: they are the ones who are supposed to know. Hey,
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  Speaker 3: thank you, I appreciated to Native Cherani, The Herald's Wellington
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  Speaker 3: Business edited.
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