Podcast Appearances
It wasn't meant to necessarily preempt anything, and she was pretty clear to set that out.
But she did make an ad hoc speech last week about the whole environment and what it might mean for monetary policy here.
Obviously, as I say, not preempting the next decision, which is coming up in a couple of weeks' time, but just sort of setting the scene, giving the Reserve Bank's views, I guess, because people have been keen to hear from them.
So
Really, I mean, for listeners of last week's podcast, a lot of it was actually, reassuringly, a lot of it was what we kind of suggested could be the case.
And so she definitely talked about the Reserve Bank here won't be concerned necessarily.
They're not going to react straight away to the so-called first round inflation impacts of inflation.
you know what we're all seeing right right now already with with higher petrol prices they can't do anything about that it's already happened it's beyond their control so they're not necessarily worried about that that so-called first round impact but it's that second round impact that's definitely definitely keeping an eye on so where those those higher fuel prices are feeding out into wider production costs transport costs that gets put into into price increases and it becomes more i guess embedded in the system so that that second round impact is what they're really keeping an eye on now
They also said we're not going to know about that for a while.
They also strongly still believe there's the spare capacity in the New Zealand economy.
So that's something they're keeping in mind as well, kind of supports that need not necessarily to rush into any of this, no knee jerk reactions.
and of course really acknowledging in the meantime that yes there could be a second round inflation impact but don't forget about the real economic impact of all of this it's it's probably going to slow growth uh might make exporting more difficult in terms of logistics simply getting the product out um crimps household budgets in terms of of disposable income available to spend on other things if it's if it's just going the petrol pump then uh you know that's that could cause some economic slowdown as well and that would of course bring inflation back down again so there's
There's very conflicting or contrasting factors going on here.
And so, yeah, as I say, the governor set that all out in her speech.
So that was probably the main sort of economic item from last week here.
And as I say on our podcast last week, we talked about a lot of that.
And it's really, I think,
From a homeowner's perspective, from a mortgage holder's perspective, I guess, and things can change very quickly, nobody really knows what's going on or what is going to happen, but I guess from a mortgage holder's perspective, the sense you take out of that speech and I guess from some general commentary is that
Yeah, you've got to acknowledge there could be an upside risk here to interest rates, to mortgage rates, but maybe not necessarily straight away.
The Reserve Bank's not going to rush into anything.