1 00:00:00,360 --> 00:00:03,519 Speaker 1: So the data is out annual inflation falling to three 2 00:00:03,560 --> 00:00:06,440 Speaker 1: point three percent in the June quarter, lifting hopes of 3 00:00:06,519 --> 00:00:10,799 Speaker 1: possible interest rate cuts sometime soon, asb now forecasts a 4 00:00:10,880 --> 00:00:13,640 Speaker 1: twenty five basis point cut to the OCR in both 5 00:00:13,680 --> 00:00:18,120 Speaker 1: October and then again in November fifty basis points this year. However, 6 00:00:18,360 --> 00:00:21,560 Speaker 1: non tradable inflation is still worryingly high, according to the data, 7 00:00:21,640 --> 00:00:24,600 Speaker 1: five point four percent for the quarter. Finance Minister Nichola 8 00:00:24,600 --> 00:00:26,800 Speaker 1: Willis is with us this evening, keilder. 9 00:00:26,600 --> 00:00:29,280 Speaker 2: Good evening, Sure, good evening, Jack. 10 00:00:29,560 --> 00:00:31,680 Speaker 1: Is the cost of living crisis over? 11 00:00:33,159 --> 00:00:36,639 Speaker 2: We are turning the corner. We are making very good progress. 12 00:00:36,840 --> 00:00:40,000 Speaker 2: It's not over until inflation is back in the band 13 00:00:40,080 --> 00:00:43,479 Speaker 2: and we're seeing interest rates coming down. But today's data 14 00:00:43,560 --> 00:00:46,519 Speaker 2: shows us we are on track. We're making very good progress. 15 00:00:46,560 --> 00:00:49,680 Speaker 2: Inflation is now the lowest it's been in three years. 16 00:00:50,200 --> 00:00:53,000 Speaker 2: It's lower than many we're predicting it would be at 17 00:00:53,000 --> 00:00:56,960 Speaker 2: this point, and all signals of it. Our plan is working. 18 00:00:57,040 --> 00:00:58,800 Speaker 2: So I'm very pleased by today's data. 19 00:00:58,880 --> 00:01:01,440 Speaker 1: Let's talk about that non catable inflation. We often call 20 00:01:01,480 --> 00:01:05,520 Speaker 1: that that the domestic inflation relative to the international forces 21 00:01:05,520 --> 00:01:08,080 Speaker 1: at play. Five point four percent is still very high. 22 00:01:08,080 --> 00:01:09,000 Speaker 1: What do you put that down to. 23 00:01:10,520 --> 00:01:13,280 Speaker 2: Well, what the data tells us is that the big 24 00:01:13,319 --> 00:01:16,760 Speaker 2: components there are rents, insurance rates, and home energy costs. 25 00:01:16,760 --> 00:01:19,560 Speaker 2: That is easing. That's down from five point eight percent 26 00:01:19,640 --> 00:01:22,800 Speaker 2: in March and down from six point six percent this 27 00:01:22,959 --> 00:01:26,080 Speaker 2: time last year. So it clearly needs to move lower. 28 00:01:26,120 --> 00:01:28,679 Speaker 2: But overall that picture has improved. 29 00:01:29,080 --> 00:01:32,560 Speaker 1: Rents and rates still a big issue. What can you 30 00:01:32,560 --> 00:01:33,039 Speaker 1: do about that? 31 00:01:34,200 --> 00:01:37,360 Speaker 2: Well, we are determined to increase housing supply in New 32 00:01:37,440 --> 00:01:40,919 Speaker 2: Zealand because ultimately we want landlords having to keep harder 33 00:01:41,080 --> 00:01:44,840 Speaker 2: for tenants. That's what will ultimately push rents lower. And 34 00:01:44,880 --> 00:01:48,559 Speaker 2: we are conducting significant reforms to ensure that more homes 35 00:01:48,600 --> 00:01:51,520 Speaker 2: can be built more cheaply, both in terms of land 36 00:01:51,640 --> 00:01:55,440 Speaker 2: uice and in terms of building consents on rates book. 37 00:01:55,600 --> 00:01:58,840 Speaker 2: I've put the challenge out there to councils me as 38 00:01:58,840 --> 00:02:01,880 Speaker 2: it doesn't every single household in the country have been 39 00:02:01,920 --> 00:02:06,680 Speaker 2: pulling in belts, being very disciplined about budgets. It's time councils, 40 00:02:06,720 --> 00:02:07,960 Speaker 2: I think that the same thing. 41 00:02:08,639 --> 00:02:10,520 Speaker 1: So are there are obvious areas where you think councils 42 00:02:10,520 --> 00:02:12,840 Speaker 1: should perhaps be trimming their belts a little bit? 43 00:02:13,840 --> 00:02:16,000 Speaker 2: Well, I just think they should do an exercise similar 44 00:02:16,000 --> 00:02:17,760 Speaker 2: to the one we've done as a government, which is 45 00:02:17,760 --> 00:02:20,480 Speaker 2: go line by line and work out are the bits 46 00:02:20,480 --> 00:02:22,840 Speaker 2: that could be trimmed back that no longer look like 47 00:02:22,880 --> 00:02:26,240 Speaker 2: the most important thing. When you have new Zealanders, you know, 48 00:02:26,320 --> 00:02:29,320 Speaker 2: particularly those on fix thing come superinutence who look at 49 00:02:29,320 --> 00:02:31,800 Speaker 2: that rates bill climbing at the rate it is and 50 00:02:31,840 --> 00:02:34,880 Speaker 2: it feels very unaffordable. So Council has to step back, 51 00:02:35,400 --> 00:02:37,519 Speaker 2: look at their own costs and say is there anything 52 00:02:37,560 --> 00:02:38,720 Speaker 2: here that we could be trimming. 53 00:02:39,880 --> 00:02:41,560 Speaker 1: A lot of the cuts that you announced in the 54 00:02:41,560 --> 00:02:44,720 Speaker 1: budget haven't yet come into fruition their plan that they 55 00:02:44,720 --> 00:02:47,720 Speaker 1: haven't come through all the way yet, So look at 56 00:02:47,720 --> 00:02:51,120 Speaker 1: this as critically as you can. Minister. How much credit 57 00:02:51,120 --> 00:02:52,919 Speaker 1: can the government really take for this? 58 00:02:54,720 --> 00:02:58,040 Speaker 2: Well, I think that we've had a period where the 59 00:02:58,080 --> 00:03:01,160 Speaker 2: government's made it a lot haigh for the Reserve Bank. 60 00:03:01,240 --> 00:03:05,600 Speaker 2: They were actively pouring fuel on the inflation via in 61 00:03:05,720 --> 00:03:09,680 Speaker 2: the form of rapidly increasing expenditure, and we've put the 62 00:03:09,720 --> 00:03:13,400 Speaker 2: handbrake back on and that can only be helpful. And 63 00:03:13,520 --> 00:03:15,799 Speaker 2: the direction that we have seat is one in which 64 00:03:15,800 --> 00:03:18,919 Speaker 2: we're going to be much more disciplined about government spend there, 65 00:03:19,240 --> 00:03:21,640 Speaker 2: which I hope means the Reserve Bank will be able 66 00:03:21,680 --> 00:03:25,240 Speaker 2: to reduce interest rates quicker than would otherwise be the case. 67 00:03:25,680 --> 00:03:29,040 Speaker 2: We've also honed and on what is actually behind the 68 00:03:29,080 --> 00:03:31,640 Speaker 2: cost of living crisis, which for many people is that 69 00:03:31,720 --> 00:03:35,040 Speaker 2: their household budget doesn't stretch as far. We're going direct 70 00:03:35,080 --> 00:03:37,560 Speaker 2: to the source. We're offering tax release so that people 71 00:03:37,560 --> 00:03:40,480 Speaker 2: will have more money in their bank accounts, and that 72 00:03:40,560 --> 00:03:42,600 Speaker 2: will be coming on stream in just two weeks. 73 00:03:42,800 --> 00:03:46,640 Speaker 1: Finance Minis Nicola Wellis, thank you for your time, Thank 74 00:03:46,720 --> 00:03:50,720 Speaker 1: you for more from Hither Duplessy Allen Drive. Listen live 75 00:03:50,840 --> 00:03:53,720 Speaker 1: to news talks it'd be from four pm weekdays, or 76 00:03:53,760 --> 00:03:55,840 Speaker 1: follow the podcast on iHeartRadio.