1
00:00:00,200 --> 00:00:02,840
Speaker 1: The longer that this economic funk that we find ourselves

2
00:00:02,920 --> 00:00:05,160
Speaker 1: and goes on, the more that Jared kurve Kiwi Bank

3
00:00:05,240 --> 00:00:07,360
Speaker 1: is being proven right, isn't he? And we had a

4
00:00:07,360 --> 00:00:09,360
Speaker 1: cut today it was twenty five basis points down to

5
00:00:09,400 --> 00:00:12,320
Speaker 1: three percent now with the expectation that we will maybe

6
00:00:12,360 --> 00:00:14,560
Speaker 1: get down to two point five percent before this thing

7
00:00:14,560 --> 00:00:17,880
Speaker 1: bottoms out. Two point five percent is where Jared Kerr

8
00:00:17,960 --> 00:00:20,680
Speaker 1: has been saying four months that we need to get to.

9
00:00:21,040 --> 00:00:23,000
Speaker 1: But even though he's been saying it, eye locked it

10
00:00:23,040 --> 00:00:25,560
Speaker 1: and looked like at least September last year, if not earlier,

11
00:00:26,000 --> 00:00:27,920
Speaker 1: Even though he's been saying it since then, the Reserve

12
00:00:27,960 --> 00:00:30,080
Speaker 1: Bank has only just caught up with him. Up to now,

13
00:00:30,120 --> 00:00:32,800
Speaker 1: they've been talking about two point seventy five three percent

14
00:00:32,920 --> 00:00:35,400
Speaker 1: maybe Now. What you should take from that is that

15
00:00:35,479 --> 00:00:38,680
Speaker 1: the Reserve Bank is surprised by what Jared Kerr and

16
00:00:38,720 --> 00:00:40,920
Speaker 1: you could argue many of us have been seeing for ages,

17
00:00:41,200 --> 00:00:45,600
Speaker 1: which is that the economy is properly, properly, properly stuffed,

18
00:00:46,080 --> 00:00:48,560
Speaker 1: like stuffed enough that they should be cutting a lot

19
00:00:48,600 --> 00:00:51,800
Speaker 1: more than they are. Why this is a surprise to

20
00:00:51,840 --> 00:00:54,240
Speaker 1: them is beyond me, because you just need to look

21
00:00:54,240 --> 00:00:56,120
Speaker 1: at what's going on with business today? To see at

22
00:00:56,160 --> 00:01:00,680
Speaker 1: Fletcher a massive loss, spark profit down, massively, huge job cuts,

23
00:01:00,680 --> 00:01:04,640
Speaker 1: their kitchen things in receivership. Now, some of that will

24
00:01:04,640 --> 00:01:07,440
Speaker 1: be absolutely because of poor decisions, but some of that

25
00:01:07,520 --> 00:01:09,959
Speaker 1: is because we are in an economic funk come recession

26
00:01:10,000 --> 00:01:12,400
Speaker 1: as bad as anything in my entire life. I mean,

27
00:01:12,440 --> 00:01:15,480
Speaker 1: the last time we saw anything this bad was the eighties,

28
00:01:15,720 --> 00:01:18,840
Speaker 1: some indicators say the seventies. So why the Reserve Bank

29
00:01:18,880 --> 00:01:22,440
Speaker 1: hasn't cut more, including today, is baffling. They debated it,

30
00:01:22,480 --> 00:01:24,760
Speaker 1: by the way, it did occur to them. Four of

31
00:01:24,800 --> 00:01:26,959
Speaker 1: them voted for the twenty five percent of the twenty

32
00:01:26,959 --> 00:01:29,240
Speaker 1: five basis point cut that we got. Two of them

33
00:01:29,560 --> 00:01:32,839
Speaker 1: voted for a double cut of fifty basis points. Two

34
00:01:32,880 --> 00:01:35,080
Speaker 1: of them can see what the rest of us can see,

35
00:01:35,080 --> 00:01:37,839
Speaker 1: but the four wins. Unfortunately, the fact that they cut

36
00:01:37,840 --> 00:01:39,960
Speaker 1: today and indicated they will cut more than they had

37
00:01:39,959 --> 00:01:43,280
Speaker 1: previously expected to cut is a sign that they made

38
00:01:43,280 --> 00:01:46,839
Speaker 1: a mistake when they didn't cut last time and opted

39
00:01:46,920 --> 00:01:49,960
Speaker 1: to hold instead. The Reserve Bank is once again caught

40
00:01:50,000 --> 00:01:52,520
Speaker 1: on the hop, making the economy worse than it needs

41
00:01:52,560 --> 00:01:55,520
Speaker 1: to be. If only Jared Kerr was running the joint.

42
00:01:56,240 --> 00:01:59,400
Speaker 1: For more from Heather Duplessy Allen Drive, listen live to

43
00:01:59,480 --> 00:02:02,520
Speaker 1: news Talk It'd be from four pm weekdays, or follow

44
00:02:02,560 --> 00:02:04,360
Speaker 1: the podcast on iHeartRadio