Bollard's barrel is nearly empty

Reserve Bank Governor Alan Bollard cut the official cash rate for the sixth time in eight months yesterday but signalled that there is not much more where that came from.

He has now cut the OCR from 8.25 per cent to 3 per cent. The bank's forecast imply it will go to 2.5 per cent and when he appeared before Parliament's finance and expenditure select committee yesterday he indicated he would take a lot of persuading to go below 2 per cent.

Lower rates hurt depositors. "I am already getting a lot of letters from older people about that," he said.

Another reason is that New Zealand as a small and highly indebted country needs higher rates to compete for funding in offshore markets.

In any case, borrowers have yet to feel the full benefits of what Dr Bollard has done already.

To read the full NZ Herald article click here

Posted: 13 Mar 2009

News articles

Browse articles
by date

September 2013

July 2013

June 2013

May 2013

December 2012

November 2012

September 2012

June 2012

April 2012

March 2012

February 2012

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011

May 2011

April 2011

March 2011

February 2011

January 2011

December 2010

November 2010

October 2010

September 2010

August 2010

July 2010

June 2010

May 2010

April 2010

March 2010

February 2010

January 2010

December 2009

November 2009

October 2009

September 2009

August 2009

July 2009

June 2009

May 2009

April 2009

March 2009

February 2009

January 2009

December 2008

November 2008

October 2008

September 2008

May 2008

April 2008

March 2008

Please disregard these fields.


banner ad