Friday, 29 April 2022

"The NZ Reserve Bank is now in panic mode...."


"After keeping the cash rate so low for so long, and embarking on a $53 billion quantitative easing programme, the [NZ Reserve] Bank is now in panic mode. Those having trouble paying back their mortgages in the next few years can blame our RBNZ Governor [Adrian Orr] and Finance Minister [Grant Robertson]. They encouraged a borrowing binge to buy [and borrow against] houses at wildly inflated prices, financed by dirt-cheap credit, turning a blind eye to the breach of the target to which they mutually agreed, and not learning the lessons of the global financial crisis in 2008.
    "The RBNZ was once lauded around the world for making NZ exceptional. It pioneered inflation targeting. We became the gold standard [sic] of monetary credibility.
    "Now, our hard-fought success and huge reputation built up over thirty years lie in ruins.... our RBNZ Governor and Finance Minister have driven a truck through the single most important agreement underpinning our economic security since 1989."
~ Auckland Uni economics professor Robert MacCulloch, from his op-ed 'The case against the Reserve Bank & Finance Minister'


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