How tone deaf of the Reserve Bank Governor to say this Wed 22 May that the Bank will eventually "win the day" with its choke-hold monetary policy. The folks who lose the day will, of course, be everyone in the country who has borrowed money. As is accepted by independent observers - and not accepted by the RBNZ inflation deniers - the Bank blundered its way into creating the rising prices we are experiencing by printing money & throwing the notes onto the inflationary bonfire, fanning it in all directions. The Bank is now suffocating us by sucking the oxygen out of NZ, trying to halt the fire it ignited, with high Official Cash Rates. What seems most important to the RBNZ is that it becomes "the winner" out of this mess, and by implication, regular New Zealanders end up the losers.
The Governor claimed this Wednesday 22 May that the last leg of inflation has proven sticky around the world and hard to graft down. As always, Orr blames everyone but himself - he once blamed Putin & bad weather due to climate change for NZ's inflation. The weather has been pretty good lately - what's the excuse now? How ironic that on the very same day the RBNZ was arguing everyone else is in the same inflationary mess as us, the front page news in the UK declared how inflation had fallen to 2.3% (within our RBNZ 1-3% target). The BBC reported on 22 May, as the RBNZ Governor was speaking, "UK Inflation falls to 2.3% as energy prices cool" and The Financial Times reported, "Well, Inflation Has Been Defeated". Number 10 Downing Street issued this Press Release, signed off by the Prime Minister:
This graph is the reason why the UK PM called a snap election yesterday. How embarrassing for the RBNZ to caught out telling a porker about how the rest of the world is like us, when it is not. How tone deaf of the RBNZ to claim it will be the (eventual) victor in this fight - that it will be the below-the-belt boxer who wins - whilst turning 5.2 million Kiwis, by implication, into the knock-out collateral damage losers. When will this RBNZ horror story end?