When you have the wrong Board Chair and wrong Governor of a Central Bank, who aren't up with state-of-art thinking about how interest rates should be set, its a recipe for throwing an economy into chaos. And so it is with NZ and our Reserve Bank. Last month the Bank cut the Official Cash Rate by 50 basis points. "Members [of the Monetary Policy Committee] agreed that an OCR of 4.75 percent is still restrictive". In common language, that means you're still being bankrupted by your mortgage costs, all for the cause of further crushing inflation. The Bank stated in its October Summary Meeting Record, "Members are confident inflation is converging to target". The Meeting keeps repeating the word "converging", over and over again: "The Committee assesses that annual consumer price inflation is within its 1 to 3 percent inflation target range and converging on the 2 percent midpoint".
