1 00:00:00,040 --> 00:00:02,840 Speaker 1: Adrian Or did his best no surprises here routine. Yesterday 2 00:00:02,920 --> 00:00:04,640 Speaker 1: is one, he did the right thing by cutting the 3 00:00:04,680 --> 00:00:07,640 Speaker 1: ocr but two gave no indication previously that yesterday was 4 00:00:07,680 --> 00:00:09,480 Speaker 1: anything close to being the day he was actually going 5 00:00:09,520 --> 00:00:11,479 Speaker 1: to do it. Meantime, most of the retail banks were 6 00:00:11,480 --> 00:00:13,800 Speaker 1: screaming for him to pull the trigger. So twenty five 7 00:00:13,800 --> 00:00:15,960 Speaker 1: points it was. In the end. QUI Banks chief executive 8 00:00:15,960 --> 00:00:18,200 Speaker 1: Steve Yukovich back with us. Steve, very good morning to you. 9 00:00:19,800 --> 00:00:21,520 Speaker 1: So you and Jared have led the way on this. 10 00:00:21,560 --> 00:00:23,599 Speaker 1: Do you feel justified or vindicated? 11 00:00:24,760 --> 00:00:26,640 Speaker 2: Oh? Look, I just I think so in a sense, 12 00:00:26,680 --> 00:00:29,240 Speaker 2: but also probably much more importantly, I'm just a big 13 00:00:29,280 --> 00:00:31,880 Speaker 2: fanner than the mentim it can create around being a 14 00:00:31,920 --> 00:00:34,360 Speaker 2: bit more positive about the outlook, and I think the 15 00:00:34,400 --> 00:00:37,600 Speaker 2: most important things what's to come now. And so our 16 00:00:37,640 --> 00:00:40,800 Speaker 2: team are pretty convinced that we're in for a very 17 00:00:40,840 --> 00:00:44,479 Speaker 2: extended period of cuts, Mike, So cutting from now till 18 00:00:44,560 --> 00:00:47,840 Speaker 2: June twenty seven. So twelve to twenty five point cuts 19 00:00:47,840 --> 00:00:51,080 Speaker 2: in a row is what the international and wholesale markets 20 00:00:51,080 --> 00:00:55,560 Speaker 2: are saying. So thankfully twenty four will be behind us 21 00:00:55,600 --> 00:00:56,800 Speaker 2: and twenty five will be better. 22 00:00:57,080 --> 00:00:59,520 Speaker 1: Right, So we got there in the end, But what 23 00:00:59,600 --> 00:01:02,000 Speaker 1: about the trust equation with the Reserve Bank. If you 24 00:01:02,040 --> 00:01:06,200 Speaker 1: have no idea what they're doing, it's certainly. 25 00:01:05,800 --> 00:01:08,160 Speaker 2: A one eighty degree from may I think everyone would 26 00:01:08,240 --> 00:01:11,160 Speaker 2: argue that's the case. I think they argue that they're 27 00:01:11,200 --> 00:01:13,480 Speaker 2: sort of the data that they get more regularly, like 28 00:01:13,959 --> 00:01:16,839 Speaker 2: card data and what's been spent in hospitality and things 29 00:01:17,400 --> 00:01:19,720 Speaker 2: sort of force their hand a little bit. I guess 30 00:01:19,720 --> 00:01:21,800 Speaker 2: my perspective is that information has been around for a 31 00:01:21,840 --> 00:01:24,440 Speaker 2: long time. I've heard you talk about it on the show. 32 00:01:24,480 --> 00:01:25,880 Speaker 2: You know, you only need to go out for dinner, 33 00:01:26,319 --> 00:01:28,440 Speaker 2: we'll have a look around as far as people spending, 34 00:01:28,560 --> 00:01:31,440 Speaker 2: so what they called high frequency data, I think it 35 00:01:31,480 --> 00:01:34,640 Speaker 2: had been around for a while. But the important thing is, 36 00:01:34,920 --> 00:01:36,840 Speaker 2: I mean they've got to be sure and they recognize 37 00:01:36,880 --> 00:01:39,880 Speaker 2: that they needed to change. So while it's a one eighty, 38 00:01:39,880 --> 00:01:40,920 Speaker 2: it's still the right decision. 39 00:01:41,280 --> 00:01:44,320 Speaker 1: Is he looking through anything because the non tradable inflation 40 00:01:44,520 --> 00:01:47,080 Speaker 1: isn't within the band, probably won't be within the band. 41 00:01:47,480 --> 00:01:48,960 Speaker 1: Is that potentially trouble or not? 42 00:01:50,040 --> 00:01:51,760 Speaker 2: Yeah? I think I think it's a very good point 43 00:01:51,760 --> 00:01:53,760 Speaker 2: because some of the things that are really stubborn, like 44 00:01:53,880 --> 00:01:56,600 Speaker 2: you know rates, you're seeing councils, steel jack up rates, 45 00:01:57,040 --> 00:02:00,320 Speaker 2: utilities and insurance are still very high. You know. My 46 00:02:00,440 --> 00:02:03,920 Speaker 2: argument would be that sort of provides maybe two percent 47 00:02:04,000 --> 00:02:07,080 Speaker 2: of the inflation, So that stuff is very very stubborn 48 00:02:07,120 --> 00:02:08,960 Speaker 2: and not going to move. I think it's everything else 49 00:02:09,680 --> 00:02:12,400 Speaker 2: that's creating this sort of downward pressure that is buying 50 00:02:12,440 --> 00:02:14,639 Speaker 2: in or that well, I should say that the Committee 51 00:02:14,680 --> 00:02:17,080 Speaker 2: is buying into, of course, because it's not just adread. 52 00:02:16,960 --> 00:02:19,360 Speaker 1: No exactly your sense of whether we get carried away 53 00:02:19,400 --> 00:02:21,320 Speaker 1: with this's not just the twenty five points, but as 54 00:02:21,320 --> 00:02:23,080 Speaker 1: you say, all the cuts still to come and we go, 55 00:02:23,160 --> 00:02:25,640 Speaker 1: wa here we go, let's buy some houses. Is that 56 00:02:25,720 --> 00:02:26,200 Speaker 1: a concern? 57 00:02:27,440 --> 00:02:30,040 Speaker 2: I don't think so, because a lot of the capacity 58 00:02:30,080 --> 00:02:32,600 Speaker 2: that people had to get excited about and rush out 59 00:02:32,600 --> 00:02:36,079 Speaker 2: and do things is often driven off the New Zealand, 60 00:02:36,120 --> 00:02:39,560 Speaker 2: in particular, off the perceived increase in value of their house, 61 00:02:39,600 --> 00:02:42,240 Speaker 2: even though if they hadn't sold it. So I think 62 00:02:42,280 --> 00:02:44,560 Speaker 2: that return in the property market's still going to be 63 00:02:44,560 --> 00:02:47,040 Speaker 2: pretty moderate. So I don't think there's going to whole 64 00:02:47,080 --> 00:02:49,000 Speaker 2: lot of people going out and gearing up their house 65 00:02:49,040 --> 00:02:52,160 Speaker 2: to buy new cars and new tellies and things. I 66 00:02:52,160 --> 00:02:54,960 Speaker 2: think people have used up a lot of that capacity 67 00:02:55,280 --> 00:02:57,200 Speaker 2: over the last couple of years, and so I think 68 00:02:57,480 --> 00:03:01,240 Speaker 2: people's response is going to be reason moderate, but it 69 00:03:01,400 --> 00:03:03,880 Speaker 2: certainly should be more confident than it was right. 70 00:03:03,760 --> 00:03:05,679 Speaker 1: To having on the programs always Steve Yukovic, who is 71 00:03:05,680 --> 00:03:08,440 Speaker 1: the the key we Bank CEO. For more from the 72 00:03:08,520 --> 00:03:11,560 Speaker 1: Mic Asking Breakfast, listen live to news talks. It'd be 73 00:03:11,680 --> 00:03:15,399 Speaker 1: from six am weekdays, or follow the podcast on iHeartRadio.