An Elite Club of Big Bankers Platformed by NZ Media Inc to say sweet nothings about the OCR
Look at who our main media outlets have asked for commentary today on the RBNZ's OCR increase (to two percent): primarily the Chief Economists at our big banks. And didn't they have many flattering comments to make about how much the RBNZ was so keen to lower inflation (in spite of it so patently missing its sworn inflation target).
Well, there's one thing we know about monetary policy: you need to act quickly and pre-emptively to avoid inflation taking root. Our RBNZ never did so - letting inflation rise over the past year to nearly 7 percent. Even with the OCR rise today, the Bank has failed to satisfy the "Taylor Rule", letting real short-run rates plummet to minus five percent, tearing up its sworn remit to never allow this situation to happen in the first place.
So why aren't the Big Bank Chief Economists calling out the RBNZ and Finance Minister for stuffing things up? Probably since they are regulated by the RBNZ. As a result, they dare not say anything that the RBNZ or government dislikes. That is, the Big Banks have a gigantic conflict-of-interest when it comes to informing the public.
Yes, it's time to call out the biased commentary from the Chief Economists at the Kiwi Big Banks on the economic affairs of this country. And it's time to call out the media for giving the Big Banks massive free publicity that helps them tout for new customers by putting their largely empty comments wall-to-wall on the front pages of the news.
How did it end up this way in NZ? How did we end up in a situation that whenever the RBNZ changes the OCR, the Big Banks get away with capturing the news cycle, unleashing a tsunami of commentary, pretending its a kind of public service? Let's identify it for what it is: pure advertising, crafted not to upset the authorities.
And all whilst ordinary Kiwis see their family finances crumble under this oppressive cost-of-living crisis, made hugely worse by this series of OCR hikes that could have been lessened had the RBNZ only acted earlier to prevent inflation reaching these levels. Isn't it time for the cosy relationship between the Big Banks and their Chief Economists, NZ Media Inc. and the Reserve Bank that has gone on for decades now in the country to be brought to an end?