Don Brash on reserve bank's moves to lower inflation

Don Brash
Oct 18, 2022
1 min read

From Radio New Zealand:

The latest inflation figures out today are expected to show a fall from the current 32 year high of 7.3 percent.

The former Reserve Bank Governor, Don Brash, was the banker who helped tame inflation during his 14 years at the helm, taking it down from roughly where it is today to under two or three percent.

He spoke to Corin Dann.

Listen here

Addendum: The inflation rate barely moved dropping to 7.2 percent

30 Comments

barriergold

Oct 19, 2022

We suck it in, and hope for the best.

barriergold

Oct 21, 2022

Replying to

That's a kind way of saying we should put them on the end of a point, and if we an't going to do that then suck it in.

Ron

Oct 18, 2022

I keep saying this ...

The charlatans in gummint and the financial rackets all imagine they can deny reality and logic to defeat the "market" and make zillions out of thin air. Why we allow this I just do not know. It is the average honest working guy striving to make a living and raise a family who has to pay for it all.

This comment was deleted.

ian

Oct 19, 2022

Replying to

Solution, it is fair to say that Hitler had a solution, as did Stalin along with others.

Often, sadly, the target was not well thought out and failed to achieve a desirable end goal. Often because the ones needed to succeed were included in the target/s.

The adjustment required is for more and more citizens becoming a little clearer now perhaps?

This comment was deleted.

gazotaki

Oct 18, 2022

Replying to

Raising interest rates lowers demand for borrowing therefore reduces consumption across all products.

One of the prime drivers of inflation was allowing borrowing against property to fund consumer purchasing like cars and washing machines. That supposedly allowed a better lifestyle but all it really did was enhance bank profits rather than second tier lenders and drove inflation.

Remember back in the early 80's when mortgages were around the 20% mark? Some personal loans were structured at finance rates in excess of 100% annual so the desire to buy a washing machine was tempered. Now, not so much.

Most banks roll over loans so they can actually have lendings exceeding deposits by a factor of 10. That would change if w…

ian

Oct 18, 2022

The downside of inflation impacts all and sundry, either badly or worse... Whatever trivial upside there maybe is hard to spot. I would see a significant hike being required, while the completely stupid in Wellington keep on throwing money out there like no tomorrow then inflation will simply get worse and worse...

The Reserve Bank then has no option to go at it hard, all out. That sadly will cost the public a lot of $$ and the blame 100% sits with the Government stupid decisions without a clue what or why.

The OCR being lower than the US has to play a huge factor in the FX drop from 72 cents to 56 cents now, that then adds to…

zespritz

Oct 18, 2022

Replying to

Taxes like RUC might be justified if it were all spent on maintaining and improving the road structure for which it was designed, but it is not. Much of the South Island is still serviced by one way bridges and gravel roads let alone the pot holes and surface degradation in the main arterial highways, meanwhile vast sums are wasted on cosy touchy feely cultural reports and patch-ups surrounded by duplicated light trucks and cone mustering. Soon the whole country will be 40kph and 20kph speed limited, the speed suited to rickshaws and bicycles. (but your administration like all good communist administrations will drive around in mercedes cavalcades.

Third world administration producing a third world result.

It is said that…

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30 Comments