The Reserve Bank doesn’t want to dance on pinheads.
No hikes on the agenda until at least 2019.
"They should have dropped it down to 1.25 %, which would create lower borrowing rates for business, which would create more jobs, meaning we would have zero unemployment – a world first"
The Reserve Bank has missed its core inflation target for eight years
"For the previous 8 years under Bollard, inflation was consistently *above* the target, so one could say it's all just evening out."
It’s what the Reserve Bank will do rather what it ought to do.
"In a low wage/high house cost economy like ours loss of margin is the reality unless we start to see some real economic growth and productivity gains, not just the sugar rush of immigration and the wealth effect of asset bubbles"