Full Show Podcast: 23 September 2026

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The Mike Hosking Breakfast 1h 29m 12 speakers 8 chapters transcribed
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What did the independent review reveal about the Reserve Bank’s COVID‑era policies?

Newstalk ZB 0:00
The home of the newsmakers and the big names. The Mike Hosking Breakfast with Bailey's Real Estate, covering all your real estate needs. News Talks B.
Mike Hosking 0:10
Morning and welcome today. The Reserve Bank blew it in COVID. Does the review tell us anything we didn't know or live through? Good news on health targets this morning. Good news on our wine. Mark and Jenny Politics Wednesday as the Parliament wraps the recession. And Richard Arnold's D. Price, they roll up to the carny ball as well. Welcome to the day. Seven past six. Yes, the Reserve Bank's been reviewed. They found what you would expect them to. During COVID, they cocked it up. One of the reviewers came from MIT, no less. She didn't need to employ financial heavyweights to find out what they did. The report was commissioned by Treasury at the insistence of Nicola Willis, who probably wanted to remind us what a womble Adrian Orr was.
Mike Hosking 0:44
Although the report does suggest that given the Monetary Policy Committee's writing instructions, a different group of people could make the same errors that the original lot did. Too much money, holding on too long, driving up inflation, you know the rest, you live through it. There are interesting things in there though. Though neither the RB nor retail banks, they say, had anything organized in case of negative cash rates. They encourage members to be more robustly debating how the uh setting of policy goes, should pay more attention to current conditions, give more weight to real interest rates and incoming economic data. To my eye, that can mean a lot or nothing. What does more robustly mean? What does more weight mean?
Mike Hosking 1:23
My summation of that period. Period. As if y you had three things basically go wrong. One, a government with a governor with an ego too large for the room, two, a minister of finance who was out of his depth and certainly not interested in any sort of fiscal constraint, and three, a period of time unseen before and associated with no shortage of panic. Add them all together, and you got New Zealand in the COVID period. In a way, it's not unlike any of the other reports we get into the state sector. Obvious failings, poor communication, Lack of preparedness and a general amount of incompetence without sized consequences. To defend them to a degree, the cash rate is a fantastically blunt tool. The economy is constantly moving, and even now no one seems to know what the hell's going on, so good luck trying to rein all that in.
Mike Hosking 2:05
But if there is a lesson in all of these reviews into the COVID era, it is that those who did well globally had competent government and associated officialdom and And those who didn't were like us, hellishly unlucky.
Newstalk ZB 2:20
News of the world in 90 seconds.
Mike Hosking 2:22
Well, UN Weaken the Sun, guess who was there?
Donald J. Trump 2:25
Will a deal be made with Iran? Or do I annihilate the Islamic Republic and do it quickly, never giving them a chance to kill and destroy people and countries again? Uh it wasn't just Iran, he had thoughts on AI. From this point forward, all of United States documents and hopefully the worlds will be changed to use the much more accurate term. Super as opposed to artificial.
Unknown 3:00
We want to make sure that there are boundaries in place for warning signals so that if things are gonna get out of hand, people know how to react in timely fashion. But no, it's it's very much an international race economically and and in every other way.
Mike Hosking 3:12
Uh some thought he'd run out of puff.
Unknown 3:14
I think he is being very cautious, understanding. That his popularity at home is a you know quite low and his popularity around the world is quite low.
Mike Hosking 3:24
He wasn't the only heavyweight in town, of course. The silver of Brazil had a few observations.
Donald J. Trump 3:28
Its credibility has never been lower. Its ability to protect the most vulnerable, those who have no army or arsenals, has never been so weak.
Mike Hosking 3:41
He's referencing the UN itself. Outside the Great Hall, the pull the signs were going on left, right, and center. Trump and Burnham, we got some highlights. They had their meeting followed up with a bit of Q ⁇ A, seemed to go okay.

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