1
00:00:00,080 --> 00:00:02,440
Speaker 1: Right now. The Reserve Bank is taking issue with the

2
00:00:02,600 --> 00:00:07,040
Speaker 1: quality and also the quantity of stats New Zealand data.

3
00:00:07,080 --> 00:00:09,200
Speaker 1: This has come out of the Reserve Bank wash up yesterday.

4
00:00:09,240 --> 00:00:11,520
Speaker 1: Liam dan Is, The Herald's Business editor at large. Hey,

5
00:00:11,560 --> 00:00:13,520
Speaker 1: lium Yay, Ryan, what's going on here?

6
00:00:13,680 --> 00:00:17,040
Speaker 2: Yeah, it's interesting. I mean the Reserve Bank is being diplomatic.

7
00:00:17,079 --> 00:00:20,640
Speaker 2: They're not saying that it's a failing of the stats

8
00:00:20,720 --> 00:00:22,600
Speaker 2: in z basically you know that they still work out

9
00:00:22,640 --> 00:00:25,319
Speaker 2: and everything, but they're basically calling for more funding and

10
00:00:25,440 --> 00:00:28,120
Speaker 2: sort of more focus on the core economic data. So

11
00:00:28,160 --> 00:00:32,920
Speaker 2: they point to the big GDP revision late last year,

12
00:00:32,920 --> 00:00:36,519
Speaker 2: which effectively said the economy was in much better shape

13
00:00:36,600 --> 00:00:40,800
Speaker 2: over the period twenty twenty three than we thought as

14
00:00:40,960 --> 00:00:44,320
Speaker 2: one of the reasons for the misstep or u turn

15
00:00:44,440 --> 00:00:50,120
Speaker 2: or whatever that they didn't make the change in the

16
00:00:51,440 --> 00:00:54,560
Speaker 2: policy direction that sort of people picked up on between

17
00:00:54,560 --> 00:00:57,800
Speaker 2: May and August. There's one of the reasons that they

18
00:00:57,920 --> 00:01:00,480
Speaker 2: highlighted there. So this came through yesterday and again in

19
00:01:00,520 --> 00:01:04,000
Speaker 2: the Select Committee this morning. They're saying our stats just

20
00:01:04,120 --> 00:01:07,280
Speaker 2: aren't up for purpose. Really, they're saying there's six months

21
00:01:07,319 --> 00:01:11,000
Speaker 2: out of date and often mismeasured. Was the quote, but.

22
00:01:10,959 --> 00:01:15,279
Speaker 1: Do other countries not operate on the similar numbers because

23
00:01:15,360 --> 00:01:18,200
Speaker 1: and as they're not more high you know, the high

24
00:01:18,240 --> 00:01:21,320
Speaker 1: frequency data that they like to talk about from lots

25
00:01:21,360 --> 00:01:23,600
Speaker 1: of different sources in New Zealand that the central banks

26
00:01:23,600 --> 00:01:24,600
Speaker 1: should be looking also.

27
00:01:24,920 --> 00:01:27,560
Speaker 2: Yeah, so they're saying they're having to look more closely

28
00:01:27,680 --> 00:01:30,080
Speaker 2: at the high frequency stuff, which is like your performance

29
00:01:30,120 --> 00:01:33,880
Speaker 2: and manufacturing and all this sort of stuff. But it's

30
00:01:34,520 --> 00:01:37,560
Speaker 2: the trouble that the more high frequency it is, the

31
00:01:37,640 --> 00:01:40,880
Speaker 2: less you know, absolute it is in terms of giving

32
00:01:40,920 --> 00:01:46,880
Speaker 2: us good, strong signals. And yeah, internationally they get inflation

33
00:01:47,040 --> 00:01:50,040
Speaker 2: data once a month, and a lot of places they

34
00:01:50,080 --> 00:01:52,160
Speaker 2: get GDP once a month and they break down the

35
00:01:52,200 --> 00:01:56,200
Speaker 2: GDP and look, we're a small country, so I suppose

36
00:01:56,200 --> 00:01:57,880
Speaker 2: we don't have the resource, but we're also a small

37
00:01:57,920 --> 00:02:00,680
Speaker 2: country in terms of what we measure. And when you

38
00:02:00,720 --> 00:02:03,480
Speaker 2: think about how important this is, like if if it's

39
00:02:03,560 --> 00:02:07,760
Speaker 2: if there's a misalignment between the monetary policy based on

40
00:02:08,720 --> 00:02:11,600
Speaker 2: understanding where economy is, it can cost billions of dollars,

41
00:02:11,600 --> 00:02:14,200
Speaker 2: as we've seen over the last few years. Now, I'm

42
00:02:14,240 --> 00:02:16,320
Speaker 2: putting aside the fact that a lot of people there

43
00:02:16,320 --> 00:02:18,360
Speaker 2: are critics out there who'll say that this sounds like

44
00:02:18,400 --> 00:02:23,079
Speaker 2: excuses or whatever from your bank. Regardless, I think it's

45
00:02:23,120 --> 00:02:26,320
Speaker 2: an area that you know, we can't lose. And if

46
00:02:26,320 --> 00:02:28,360
Speaker 2: the government doesn't have a lot of money to do

47
00:02:28,919 --> 00:02:31,600
Speaker 2: to look at the funding on this, perhaps they should

48
00:02:31,639 --> 00:02:34,960
Speaker 2: be looking at some of the prioritization of where status

49
00:02:34,960 --> 00:02:38,120
Speaker 2: puts its focus, because they have had a number of

50
00:02:38,200 --> 00:02:41,359
Speaker 2: years of sort of broadening their focus under the previous government.

51
00:02:41,440 --> 00:02:43,880
Speaker 2: Well being and things like that, looking at a wide.

52
00:02:43,680 --> 00:02:44,959
Speaker 1: Range of nonsense stuff.

53
00:02:45,280 --> 00:02:46,880
Speaker 2: Well, yeah, look, I had a look. There isn't that

54
00:02:47,000 --> 00:02:49,519
Speaker 2: much nonsense stuff, but there is a lot of qualitative stuff,

55
00:02:49,560 --> 00:02:52,840
Speaker 2: stuff that gives us a nice breakdown of how inflation

56
00:02:52,960 --> 00:02:56,760
Speaker 2: falls within different social groups and different you know, all

57
00:02:56,840 --> 00:02:59,639
Speaker 2: the different groupings. It's nice to see that and it

58
00:02:59,680 --> 00:03:02,280
Speaker 2: can help help with policy setting for inequality and all

59
00:03:02,320 --> 00:03:04,800
Speaker 2: that sort of stuff. But really, at the core, you know,

60
00:03:04,919 --> 00:03:07,799
Speaker 2: we need to get the basics right, and that's maybe

61
00:03:07,840 --> 00:03:10,000
Speaker 2: where we're not leading the world like we should be.

62
00:03:10,080 --> 00:03:13,160
Speaker 1: Yeah. Interesting, surely there's some at one day and there'll

63
00:03:13,160 --> 00:03:14,840
Speaker 1: be an AI thing that will just take care of

64
00:03:14,919 --> 00:03:15,519
Speaker 1: it all.

65
00:03:16,200 --> 00:03:18,200
Speaker 2: I can never decide whether I'm scared of the AI.

66
00:03:18,360 --> 00:03:20,480
Speaker 2: I just wanted to move faster and actually start getting

67
00:03:20,520 --> 00:03:20,840
Speaker 2: it all.

68
00:03:20,800 --> 00:03:23,440
Speaker 1: Right loomed and New Zealand Hell business edits are at large.

69
00:03:23,480 --> 00:03:26,200
Speaker 1: Thanks so much for your time. For more from Heather

70
00:03:26,280 --> 00:03:29,320
Speaker 1: Duplessy Alan Drive, listen live to news Talks it'd be

71
00:03:29,440 --> 00:03:33,320
Speaker 1: from four pm weekdays, or follow the podcast on iHeartRadio