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Mike's Minute: Who I'd have for the Governor of the Reserve Bank · Best of Business

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  Speaker 1: You're listening to a podcast from News Talk sed be
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  Speaker 1: follow this and our wide range of podcasts now on iHeartRadio.
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  Speaker 2: Can I suggest Jared Kerr for Governor of the Reserve
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  Speaker 2: Bank Jared's Kubibanks chief Economists. Now, he's been completely consistent
• 0:25
  Speaker 2: in his ongoing commentary around the interest rate cuts and
• 0:27
  Speaker 2: the reserve banks need to do more and to be fair. Actually,
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  Speaker 2: our own Greg Smith at Devon has told us and
• 0:32
  Speaker 2: argued a similar sort of story over the last few months. Now,
• 0:34
  Speaker 2: the Kiwibank economic report that got a decent amount of
• 0:37
  Speaker 2: coverage over the weekend is Jared's proof positive that he
• 0:40
  Speaker 2: is right and Adrian and Christian have been and are wrong.
• 0:44
  Speaker 2: As long as they continue to be myopic and look
• 0:46
  Speaker 2: at nothing but inflation, they can argue one, it's in
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  Speaker 2: the band, even though it's dangerously close to not being
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  Speaker 2: and will most likely breach it this year. And two
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  Speaker 2: this ongoing but increasing false idea that they have cut
• 0:59
  Speaker 2: enough already and the efforts of that will flow through eventually.
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  Speaker 2: See here's the problem. We're virtually in August and the
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  Speaker 2: twenty twenty five, the latter part of this year that
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  Speaker 2: was supposed to be lifted off is nothing of the sort,
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  Speaker 2: and the Kiwbank report confirms it. It tells us what
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  Speaker 2: we already know. Obviously, the further south you go in
• 1:13
  Speaker 2: this country, the better off it is. But here's the
• 1:16
  Speaker 2: real news. Even in the best, most lucrative, optimistic part
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  Speaker 2: of the country i e. Otago and Southland, you only
• 1:22
  Speaker 2: get five out of ten. That's your top score. Five
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  Speaker 2: out of ten a half mark is as good as
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  Speaker 2: it gets. The rest of the country is miserable. Are
• 1:30
  Speaker 2: there science, Yes, but how long do you want to
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  Speaker 2: squeeze the economic lemon? Looking for juice, dairy meat, kiwi fruit,
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  Speaker 2: all the stuff we've talked about and celebrated. It's not
• 1:38
  Speaker 2: only doing the heavy lifting, it's doing almost all the lifting.
• 1:41
  Speaker 2: Tourism is there in Otago, Central, Otago Shore, but it's
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  Speaker 2: still only eighty six percent of what it was six
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  Speaker 2: years ago. Confidence hard to find. Foreigners still can't buy
• 1:51
  Speaker 2: a house when they invest millions. And for every dollar
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  Speaker 2: you get from lower interest rates, you're going to pay
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  Speaker 2: two dollars more for your power, for your insurance, for
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  Speaker 2: your rates, which have become the new version of highway robbery.
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  Speaker 2: The economy needs help. It needs a major enthusiast. It
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  Speaker 2: needs a circuit breaker and the Reserve Bank, in their view,
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  Speaker 2: actions are potentially it. Jared sees it, Greg sees it,
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  Speaker 2: John Key sees it. He wants a full one hundred
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  Speaker 2: basis points. But until any one of them is the governor,
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  Speaker 2: we rely on Christian and his committee, and that is
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  Speaker 2: where the real problem lies.
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