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Speaker 1: I was having a good old debate with a mate

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Speaker 1: at the weekend about interest rates, because we're both at

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Speaker 1: the age where mortgages are unfortunately a thing in Auckland,

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Speaker 1: quite a big and annoying thing. Now, this made of

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Speaker 1: mine knows a bit more about the stuff than I do.

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Speaker 1: Watches the markets very closely for his job, and he's

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Speaker 1: worried about the middle of the year. Potentially this recovery,

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Speaker 1: that's what we're going to officially call it, yet coming

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Speaker 1: to a bit of a standstill or an abrupt holt.

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Speaker 1: We've spoken before about elections putting the kai bosh on

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Speaker 1: growth a bit, people hold back weak to see what happens.

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Speaker 1: We've spoken about Bill English's comments about our recovery unlike

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Speaker 1: across the Ditch coming in spite of a rebound in

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Speaker 1: house prices. In Australia, everything's hot, the weather, house prices, inflation, growth, employment,

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Speaker 1: everything's just hot, hot, hot. It's lightly on a different

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Speaker 1: hemisphere to us. There was a good podcast talking about

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Speaker 1: some of this of interest it's called with the Westpac Economists. Now,

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Speaker 1: the RBA's rate is now three point eight five percent

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Speaker 1: ours two point twenty five. It's been about fifteen years

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Speaker 1: since there has been such a massive gap between the

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Speaker 1: two of them. We usually cycle closer together most of

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Speaker 1: the time, but we've drifted apart to the point where

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Speaker 1: one is so far over the hill we actually can't

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Speaker 1: see each other anymore. This is all by design, of course.

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Speaker 1: We have been way more aggressive engineered the recession to

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Speaker 1: crash inflation. They went a lot softer to take into

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Speaker 1: account employment. They have a dual mandate. The Coalition got

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Speaker 1: rid of ours. The Aussies are now upping rates again

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Speaker 1: because their inflation is taking off again. Ours has a

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Speaker 1: mild case of fever, but nothing like their is sitting

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Speaker 1: at nearly four percent now. The question anyone thinking about

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Speaker 1: this stuff with a mortgage is asking themselves is this,

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Speaker 1: would you swallow a bit of inflation to have an

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Speaker 1: economy that's actually firing? In other words, in future, would

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Speaker 1: you rather this was handled the Aussie way or the

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Speaker 1: Kiwi way? And crucially, can our economy kick back? Intogear

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Speaker 1: without its usual rocket fuel runaway house prices. For more

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Speaker 1: from early edition with Ryan Bridge. Listen live to News

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Speaker 1: Talks at b from five am weekdays, or follow the

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Speaker 1: podcast on iHeartRadio.