1 00:00:00,320 --> 00:00:02,600 Speaker 1: So the Reserve Bank cut the ocr for the final 2 00:00:02,680 --> 00:00:05,240 Speaker 1: time this year twenty five basis points two point two 3 00:00:05,320 --> 00:00:08,280 Speaker 1: five percent. We were expecting that. It says there was 4 00:00:08,320 --> 00:00:11,280 Speaker 1: a bit of regal room in the economy. Obviously, inflation 5 00:00:11,400 --> 00:00:13,760 Speaker 1: now projected to fall to around two percent by mid 6 00:00:13,840 --> 00:00:16,279 Speaker 1: twenty twenty sixth. Nikola Willis is the Finance Minister with 7 00:00:16,360 --> 00:00:19,360 Speaker 1: US Live this morning. Good morning minister, Good morning man. 8 00:00:19,560 --> 00:00:21,160 Speaker 1: Did the economy grow this year? 9 00:00:22,640 --> 00:00:25,320 Speaker 2: Well, in this first quarter of the year it grew 10 00:00:25,440 --> 00:00:28,120 Speaker 2: very strongly at about zero point nine percent. We had 11 00:00:28,120 --> 00:00:31,920 Speaker 2: a downturn in the second quarter. The Reserve Bank the 12 00:00:32,000 --> 00:00:35,520 Speaker 2: State of yesterday that they think that was statistically understated 13 00:00:35,520 --> 00:00:38,479 Speaker 2: and will be a readjusted at a further update. They 14 00:00:38,520 --> 00:00:41,080 Speaker 2: think that the economy is currently growing and that that 15 00:00:41,200 --> 00:00:44,480 Speaker 2: growth will strengthen into next year. 16 00:00:44,720 --> 00:00:47,120 Speaker 1: So how much do you think we grew this calendar year? 17 00:00:48,520 --> 00:00:51,320 Speaker 2: Well, it's too early to say that. We will get 18 00:00:51,360 --> 00:00:54,280 Speaker 2: the data for the third quarter in a couple of weeks, 19 00:00:54,400 --> 00:00:57,480 Speaker 2: and we'll get their data for the December quarter early 20 00:00:57,560 --> 00:00:58,040 Speaker 2: next year. 21 00:00:58,400 --> 00:01:00,440 Speaker 1: Is it annoying that data is so wrong? 22 00:01:02,000 --> 00:01:05,600 Speaker 2: Look, it is difficult that the data lags, and it 23 00:01:05,680 --> 00:01:08,360 Speaker 2: is the case that's in their data has had to 24 00:01:08,400 --> 00:01:13,959 Speaker 2: be updated fairly frequently and adjusted and look, that's the 25 00:01:14,040 --> 00:01:17,240 Speaker 2: reality of the sets process. We can't do much about it, 26 00:01:17,560 --> 00:01:19,680 Speaker 2: but we do get enough other information that we get 27 00:01:19,720 --> 00:01:22,559 Speaker 2: a sense of where the economy is, and that's allowed 28 00:01:22,560 --> 00:01:25,920 Speaker 2: the Reserve Bank to be very confident in their forecasts 29 00:01:26,560 --> 00:01:29,760 Speaker 2: that we're currently growing, that that growthal strength next year, 30 00:01:29,760 --> 00:01:32,120 Speaker 2: and that inflation will be coming down next year. 31 00:01:32,640 --> 00:01:34,880 Speaker 1: Which is good and that sounds great, but we have 32 00:01:35,000 --> 00:01:38,160 Speaker 1: heard this story before. Our big problems productivity, isn't it 33 00:01:38,200 --> 00:01:41,000 Speaker 1: That is going to be constraining whatever growth we might 34 00:01:41,040 --> 00:01:43,480 Speaker 1: be getting, and also we don't have immigration to prop 35 00:01:43,520 --> 00:01:43,840 Speaker 1: it up. 36 00:01:44,840 --> 00:01:49,480 Speaker 2: Well, Productivity is an issue, but fundamentally, if you haven't 37 00:01:49,480 --> 00:01:52,120 Speaker 2: got your inflation down in an economy, and you haven't 38 00:01:52,160 --> 00:01:56,760 Speaker 2: got your interest rates are coming down, then those fundamentals 39 00:01:56,840 --> 00:02:00,760 Speaker 2: mean that you won't get productivity growth. What we've now 40 00:02:00,760 --> 00:02:03,080 Speaker 2: got in the New Zealand economy is a situation where 41 00:02:03,120 --> 00:02:05,600 Speaker 2: inflation is back in target is set to come back 42 00:02:05,640 --> 00:02:08,400 Speaker 2: down to the middle of the band. That's great for growth. 43 00:02:08,919 --> 00:02:11,320 Speaker 2: We've got interest rates at a low rate, which means 44 00:02:11,320 --> 00:02:13,800 Speaker 2: that you do have more cash pumping through the economy. 45 00:02:13,919 --> 00:02:16,320 Speaker 2: That's great for growth and now we are in a 46 00:02:16,360 --> 00:02:19,399 Speaker 2: position to be building that future productivity growth and that's 47 00:02:19,400 --> 00:02:23,000 Speaker 2: where things like replacing the Resource Management Act, getting rid 48 00:02:23,040 --> 00:02:27,080 Speaker 2: of red tape in the Regional Council structures, ensuring that 49 00:02:27,160 --> 00:02:31,280 Speaker 2: we're delivering infrastructure faster, lifiting education standards. All of those 50 00:02:31,760 --> 00:02:34,840 Speaker 2: are about future productivity and that's why our government is 51 00:02:34,919 --> 00:02:35,959 Speaker 2: driving those reforms. 52 00:02:36,080 --> 00:02:38,239 Speaker 1: They said the Reserve Bank margins for the bank's a 53 00:02:38,320 --> 00:02:41,480 Speaker 1: healthy room to bring the rates down further. I'm speaking 54 00:02:41,480 --> 00:02:44,320 Speaker 1: to Antonio Watson later this morning. What's your message to her. 55 00:02:45,200 --> 00:02:47,679 Speaker 2: Well, my message to her would be pass it all on. 56 00:02:47,800 --> 00:02:50,360 Speaker 2: You are a member of the New Zealand economy and 57 00:02:50,400 --> 00:02:54,000 Speaker 2: the actions you take have a significant impact on how 58 00:02:54,040 --> 00:02:56,000 Speaker 2: New Zealanders are able to invest and growth. 59 00:02:56,360 --> 00:02:58,720 Speaker 1: Your comments on the Regulatory Standards Bill, was that just 60 00:02:58,800 --> 00:03:01,480 Speaker 1: on the fly or are you seriously thinking you might 61 00:03:01,560 --> 00:03:03,160 Speaker 1: campaign on repealing. 62 00:03:04,360 --> 00:03:07,120 Speaker 2: Well, it's just just to be clear that National has 63 00:03:07,160 --> 00:03:10,760 Speaker 2: its own positions on legislation. We don't just adopt act 64 00:03:10,919 --> 00:03:16,040 Speaker 2: positions as a coalition government. Yes, we do support the 65 00:03:16,240 --> 00:03:19,040 Speaker 2: commitments we've made which meant that we pass that legislation. 66 00:03:20,280 --> 00:03:23,640 Speaker 2: There's still a year at least until the next election 67 00:03:23,800 --> 00:03:27,160 Speaker 2: and so as good citizens, we need to monitor how 68 00:03:27,200 --> 00:03:31,079 Speaker 2: that legislation operates in practice, whether we think on balance 69 00:03:31,800 --> 00:03:34,240 Speaker 2: that the pros outweigh the cons and then the National 70 00:03:34,240 --> 00:03:37,920 Speaker 2: Party Caucus will take a position on whether we support 71 00:03:37,960 --> 00:03:39,160 Speaker 2: it going into the next election. 72 00:03:39,360 --> 00:03:40,360 Speaker 1: What's your personal view. 73 00:03:42,400 --> 00:03:45,160 Speaker 2: We'll look my personal viewers that we do need to 74 00:03:45,240 --> 00:03:50,080 Speaker 2: monitor it to see whether it adds process or whether 75 00:03:50,280 --> 00:03:53,960 Speaker 2: in fact it's advantageous. And I've got an open mind. 76 00:03:54,120 --> 00:03:56,840 Speaker 1: It looks like just another layer of bureaucracy and it 77 00:03:56,880 --> 00:03:58,800 Speaker 1: doesn't actually do any nothing meaningful. 78 00:04:00,240 --> 00:04:03,880 Speaker 2: The government decided to progress it because fundamentally we do 79 00:04:04,000 --> 00:04:06,680 Speaker 2: want good regulation and that's what the intent of the 80 00:04:06,760 --> 00:04:09,120 Speaker 2: legislation is. We've now got an opportunity of these next 81 00:04:09,120 --> 00:04:12,360 Speaker 2: few months to see what it adds in practice. We'll 82 00:04:12,400 --> 00:04:14,880 Speaker 2: be watching it here Flee and then the National Party 83 00:04:14,920 --> 00:04:17,400 Speaker 2: Caucus will discuss that will take a position going into 84 00:04:17,480 --> 00:04:18,240 Speaker 2: next year's. 85 00:04:17,960 --> 00:04:19,680 Speaker 1: Campaign making the Willis Finance Minister. 86 00:04:20,520 --> 00:04:22,800 Speaker 2: For more from Early Edition with Ryan Bridge. 87 00:04:22,880 --> 00:04:26,320 Speaker 1: Listen live to News Talks it be from five am weekdays, 88 00:04:26,560 --> 00:04:28,560 Speaker 1: or follow the podcast on iHeartRadio.