1 00:00:00,120 --> 00:00:02,480 Speaker 1: Remember just a few weeks ago John Key came out 2 00:00:02,520 --> 00:00:05,720 Speaker 1: and he said he wanted one hundred basis point cut 3 00:00:05,760 --> 00:00:09,039 Speaker 1: from the Reserve Bank. Well, they almost gave him what 4 00:00:09,080 --> 00:00:12,240 Speaker 1: he wanted yesterday. It's easy to be an armchair critic 5 00:00:12,280 --> 00:00:14,320 Speaker 1: of the boffins down at number two the terrorists. They 6 00:00:14,360 --> 00:00:18,000 Speaker 1: should have gone for fifty Club twenty five was too cautious. 7 00:00:18,400 --> 00:00:21,560 Speaker 1: But markets listen as much to the guff after the 8 00:00:21,560 --> 00:00:24,880 Speaker 1: big announcement as they do the actual announcement. And if 9 00:00:24,920 --> 00:00:27,360 Speaker 1: you need proof of that, already, retail banks have started 10 00:00:27,360 --> 00:00:30,440 Speaker 1: slashing mortgage rates, both variable and fixed. That's on top 11 00:00:30,480 --> 00:00:32,760 Speaker 1: of the cuts that they already made last week. Pricing 12 00:00:32,760 --> 00:00:35,120 Speaker 1: in the twenty five some of the big ones will 13 00:00:35,120 --> 00:00:38,440 Speaker 1: in the coming weeks, some say some economists picking get 14 00:00:38,440 --> 00:00:40,839 Speaker 1: down to four and a half on short term fixed. 15 00:00:41,360 --> 00:00:44,560 Speaker 1: Look how the currency markets reacted. These guys were surprised. 16 00:00:45,440 --> 00:00:48,080 Speaker 1: Coming out with what is essentially a triple shot to 17 00:00:48,159 --> 00:00:53,080 Speaker 1: two point five by Christmas is a strong signal to send. 18 00:00:53,840 --> 00:00:56,160 Speaker 1: It's easy to get caught up in the hysteria of 19 00:00:56,320 --> 00:00:59,680 Speaker 1: calls for double shot all at once, But the bank 20 00:01:00,200 --> 00:01:01,840 Speaker 1: have its cake and eat it. To eat it too, 21 00:01:02,440 --> 00:01:05,920 Speaker 1: get businesses and households spending without risking inflation which is 22 00:01:06,000 --> 00:01:10,000 Speaker 1: touching cloth on three percent. Yes, they do look through 23 00:01:10,200 --> 00:01:13,440 Speaker 1: near term inflation, but there's also heat in the provinces. 24 00:01:13,480 --> 00:01:16,760 Speaker 1: It's not all about Auckland. And remember the days of 25 00:01:16,840 --> 00:01:20,199 Speaker 1: Adrian Or where the Reserve Bank hiked the rate quick 26 00:01:20,240 --> 00:01:23,000 Speaker 1: as a sherper up Mount Everest before nose diving it 27 00:01:23,040 --> 00:01:26,920 Speaker 1: back down again. You can achieve the same outcome without 28 00:01:27,160 --> 00:01:32,520 Speaker 1: risking overcooking things again, repeating the same mistakes. It's only 29 00:01:32,680 --> 00:01:35,480 Speaker 1: six or so weeks till the next call. If they 30 00:01:35,800 --> 00:01:38,960 Speaker 1: do need more, they can do more. There's no doubt 31 00:01:39,040 --> 00:01:42,600 Speaker 1: we've had a quarter two recovery blip, but we've had 32 00:01:42,840 --> 00:01:48,080 Speaker 1: promising July manufacturing data. We've got improving services sector data 33 00:01:48,120 --> 00:01:50,120 Speaker 1: out last week. All of that stuff is happening. All 34 00:01:50,120 --> 00:01:53,760 Speaker 1: of that stuff is good and showing promise. The message 35 00:01:53,800 --> 00:01:57,760 Speaker 1: is clear. Though. We're not walking back to Everest camp. 36 00:01:57,920 --> 00:02:00,440 Speaker 1: We are walking back to Everest camp. Rather, we're not running. 37 00:02:00,480 --> 00:02:03,120 Speaker 1: We're not in a hurry, we're not sprinting. And given 38 00:02:03,160 --> 00:02:06,160 Speaker 1: the over and undercooking that went on under Or, that's 39 00:02:06,280 --> 00:02:10,040 Speaker 1: probably the right speed. So I'm with the four in 40 00:02:10,120 --> 00:02:14,639 Speaker 1: Club twenty five with a caveat for now. For more 41 00:02:14,680 --> 00:02:17,800 Speaker 1: from Early Edition with Ryan Bridge, listen live to news 42 00:02:17,840 --> 00:02:20,880 Speaker 1: talks it'd be from five am weekdays, or follow the 43 00:02:20,880 --> 00:02:22,359 Speaker 1: podcast on iHeartRadio