Reserve Bank of New Zealand

Mediaworks have zero contrition over RBNZ embargo breach

via RNZ

via RNZ

Instead, they’re taking a stance of indignation.

MediaWorks says it’s concerned and disappointed that the Reserve Bank has decided to exclude its journalists from media conferences, following the leak of the RBNZ’s Official Cash Rate (OCR) announcement on March 10.

The RBNZ today sent out details of an upcoming media conference about the Bank’s six-monthly Financial Stability Report. The invitation contained a note saying MediaWorks representatives would be excluded from such conferences “until further notice”.

MediaWorks, which owns Newshub, says the decision is concerning. Read more »

It’s official: MediaWorks journalists no longer welcome at Reserve Bank

via RNZ

via RNZ

…but they are so proud that they managed to get rid of Weldon.  Aren’t they doing well?

MediaWorks staff have been banned from Reserve Bank media conferences after one of its journalists leaked March’s cut to the Official Cash Rate in advance.

The central bank said the exclusion would remain in place until further notice. Read more »

Seasoned reporters extremely angry about Mediaworks’ lack of integrity

A true contender for the Sledge of the Year:

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I wish we could have had a non-censored version of Hosking’s thoughts on this.   The fact that a media organisation broke a Reserve Bank embargo while headed by the ex CEO of the NZ Stock Exchange is just unforgivable.   Read more »

Bill and John’s 4th term is looking dicey, and so are the tax cuts

Economy, economy, economy.

National have had the benefit of a well performing one for the last 2 election results, but unless that milk market perks up, they’re staring down a very tricky campaign in 2017.

New Zealand’s central bank has warned that a prolonged slump in dairy prices could get worse, forcing interest rates down to maintain growth in the farm-reliant economy.

Reserve Bank of New Zealand governor Graeme Wheeler said today the price of whole milk powder had plummeted 63 percent since February 2014 and was still under pressure.

“High stockpiles of whole milk powder in China, the increase in global milk supply, and the trade diversion issues involving Russia make for a very uncertain future, with the potential for further downward pressure on global dairy prices,” he said.

The Reserve Bank keeps a close eye on milk prices because New Zealand is the world’s largest dairy exporter, selling some NZ$15 billion a year, about a third of the country’s entire exports.   Read more »

Reserve Bank told off for micromanaging mortgage market – and failing

The Reserve Bank copped a kicking from treasury for their failed meddling in the mortgage market.

Not only was it unnecessary it also failed.

The Reserve Bank has been told to stick to its knitting by the Treasury, with officials warning that rules on mortgage borrowing need to be within its mandate.

In documents released on Thursday evening, Treasury officials also warned that the original loan to value restrictions put in place by the Reserve Bank may have led to more activity by property investors. It follows numerous claims that the rules have hurt first time buyers.

In a briefing for Secretary to the Treasury Gabriel Makhlouf, officials said they agreed with the Reserve Bank that a pick-up on the Auckland housing market “could potentially pose a threat to financial stability” in the coming years.

“However, Treasury has been engaging with the RBNZ to suggest that although we accept that house price changes can have macroeconomic implications, the RBNZ’s mandate is focused on promoting financial stability, and therefore the policy proposals should be reframed to focus more clearly on reducing systemic risk rather than asset prices.”

The comments appear to suggest the Reserve Bank is being warned that it may be overstepping its role over financial stability, a claim made in recent months by Michael Reddell, a senior adviser to the bank who was made redundant earlier this year.   Read more »

OCR higher under Labour for nine years

OCR

(Source data: http://www.rbnz.govt.nz/monetary_policy/ocr/)

The OCR was launched as a monetary policy tool in March 1999, at 4.5%.

After Labour was elected in 1999, it was increased to 5%.  It peaked at 8.25% in July 2007 and stayed that high until July 2008.

On the day of the 2008 election, 8 November 2008, the OCR was 6.5%.

This means, for the whole period of the Helen Clark government, the OCR was between 5.0 and 6.5% after traversing the heights of 8.25%.   Read more »

The new big tool is likely to be little better than politicians snake oil

The ANZ Bank is having none of David Parker’s posturing and mistruths.

In their latest Market Focus of 28 April 2014 they basically call out Parker as a snake oil salesman.

The monetary policy framework has served the NZ economy well. Tweaks have been made from time to time to ensure that the NZ framework has evolved in line with global best practice, with the use of macro-prudential policy adding more ammunition to the RBNZ’s policy arsenal. However, the mandate has remained price stability, as this is the best contribution monetary policy can make to delivering better outcomes.  Read more »

More good news

While David Cunliffe suns himself on holiday, contemplating how he will hide his rich prick lifestyle from the seething masses, still more economic good news continues to roll in.

Labour and the Greens are going to have a real problem in fighting against this avalanche of good news and government likely to ask voters why they would put everything at risk.

New Zealand has begun an economic boom that could drive its currency past Australia’s for the first time in four decades, HSBC Bank Australia says.

The bank rates the rebuilding of earthquake-damaged Christchurch – one of three things driving the economy – as an economic force as important to New Zealand as the resources boom of the last decade was to Australia’s economy.

“New Zealand is set for a strong 2014, with the economy already firing on all cylinders,” Adam Richardson and Paul Bloxham of HSBC Bank Australia say in a report.

New Zealand is likely to outperform almost all other OECD economies in 2014, except Chile, Israel and Mexico.

HSBC forecasts gross domestic product (GDP) will expand by 3.4 per cent in 2014, up from 2.8 per cent in 2013.

The New Zealand dollar will rise to 87 US cents by the end of 2014. It was 82.46 US cents at 5pm on Friday.  Read more »

The “rock star” economy of 2014

People around the world are starting to understand what our opposition parties have failed to grasp…National has actually done a good job with the economy and now it is starting to hum.

New Zealand will be the “rock star” economy of 2014, with growth set to outpace most of its developed markets peers, according to HSBC, a stark contrast with neighboring Australia, which is struggling to maintain economic momentum.

“We think New Zealand will be the rock star economy of 2014. Growth is going to pick up pretty solidly this year,” Paul Bloxham, chief economist for Australia and New Zealand at HSBC, told CNBC Asia’s “Squawk Box” on Monday.

HSBC forecasts the economy will grow 3.4 percent in 2014—the fastest pace since 2007 and well above trend growth of 2.5 percent. For 2013, the economy is expected to post growth of 3.0 percent, according to the bank.

What will drive this “rock star” economy then, since Labour reckons we are in the dog box…surely the experts must be wrong because David Cunliffe is right?  Read more »