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Welcome Back to the Reserve Bank OCR Comedy Show

In the aftermath of the Christchurch Earthquake, the RBNZ went and cut the OCR by 50 basis points in early 2011. Here's why: “We have acted pre-emptively in reducing the OCR to lessen the economic impact of the earthquake and to guard against the risk of this impact becoming especially severe,” Bollard told reporters in Wellington. “While it is difficult to know exactly how large or long-lasting these effects will be, it is clear that economic activity, most certainly in Christchurch but also nationwide, will be negatively impacted.”

In the aftermath of Hurricane Gabriel the RBNZ has just decided to do the opposite, putting up the OCR by 50 basis points, notwithstanding the Bank's near-identical observation in 2023 to Governor Bollard's in 2011 that, "Cyclone Gabrielle and other recent severe weather events have had a devastating effect on the lives of many NZ'ers. .. It remains unclear how significant the impact of these events will be on NZ’s longer-term productive capacity".

No comment. Maybe you can go figure.



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