John Key to Reserve Bank: do your bloody job

Next leader? Who cares?

Why is it my fault?

It appears John Key’s reaction to today’s pressure is to kick the Reserve Bank governor in the shins:

Prime Minister John Key was critical of the Reserve Bank Deputy Governor’s speech on dealing with the housing shortage.

Without any dramatic action taken on tighter borrowing measures, the Bank’s plans seemed to be lacking urgency.

The Deputy Governor didn’t announce extending the loan-to-value ratio (LVR) controls which Key had encouraged – these probably wouldn’t be put in place until the end of the year. Neither did he announce implementing greater deposit requirements when securing mortgage loans.

“I stand by what I said, I think they should get on with it,” Key said.

He claimed he was aware of what the Deputy Governor would say on Thursday night.

If he was frustrated, he kept it well-masked, but stated that bank chief executives and economists were on his side.
“The Bank’s making the point that it’s a team effort, but the Government is doing an enormous amount, and local government is as well,” he said.

“Actually we’re all in this together. We’re not critical of the bank, but we’re just simply saying it’s not like they don’t understand LVR restrictions.

“We gave them that tool in their toolbox. They know exactly how to do it and they can do it very quickly.”

John Key wants the Reserve Bank to have the bottle to use the measures at its disposal rather than sit back and criticise the government.

Interesting game of chicken.

Let’s see who blinks first.

 

– Stuff


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