I’m sure you will have been following the Reserve Bank Governor’s comments and he’s on record as saying while he must ensure the country doesn’t overspend thus driving inflation….he is firm of the view that he will not increase interest rates until the economy is moving ahead again and he doesn’t see that as a likelihood until well into 2012.
At the same time, economist, Rodney Dickens has come out suggesting the whole approach to interest rate management of the Reserve Bank is failed! Yes, he believes a stable approach with semi-fixed OCR rates delivering market rates of around 6% would allow the entire banking community and the New Zealand commercial and private communities to plan medium to long term…..something this country has not been able to deliver since the dollar was floated.
Goodness! Management! Long term planning! Stability! What an interesting
set of options!
July 19 2011 01:36 pm | Blogroll