1
00:00:00,040 --> 00:00:02,279
Speaker 1: So the new Reserve Bank governor is doctor Anna Brahman

2
00:00:02,440 --> 00:00:04,880
Speaker 1: out of Sweden, only the second time we've had someone

3
00:00:04,920 --> 00:00:07,160
Speaker 1: from off shore. Of course three hundred candidates in the field.

4
00:00:07,200 --> 00:00:08,960
Speaker 1: She comes to us from the RIX Bank, which is

5
00:00:09,200 --> 00:00:12,080
Speaker 1: where she's been. The deputy governor, Selva Berziki is the

6
00:00:12,119 --> 00:00:15,040
Speaker 1: Swedish economist for Bloomberg Economic serenders with us on this

7
00:00:15,120 --> 00:00:15,720
Speaker 1: sober morning.

8
00:00:16,920 --> 00:00:17,720
Speaker 2: Hi, good morning.

9
00:00:18,040 --> 00:00:20,200
Speaker 1: The role of the RIX Bank in terms of handling

10
00:00:20,239 --> 00:00:24,320
Speaker 1: of COVID and whether it is perceived to have handled

11
00:00:24,360 --> 00:00:26,639
Speaker 1: things generally well during that period.

12
00:00:28,400 --> 00:00:29,120
Speaker 2: Yep, that's right.

13
00:00:29,720 --> 00:00:32,560
Speaker 1: And have they Is it perceived in Sweden as having

14
00:00:32,640 --> 00:00:34,400
Speaker 1: handled that particular period well?

15
00:00:36,000 --> 00:00:40,000
Speaker 2: I think it's of course, looking back twenty twenty vision

16
00:00:40,600 --> 00:00:46,680
Speaker 2: it's you can always find items of diversity of discussion

17
00:00:46,840 --> 00:00:50,720
Speaker 2: and criticism. I think that all the economies at the

18
00:00:50,760 --> 00:00:55,440
Speaker 2: time were faced with high inflation coming from supply side shocks,

19
00:00:56,120 --> 00:01:00,200
Speaker 2: and a lot of the times countries like Sweden all

20
00:01:00,280 --> 00:01:03,760
Speaker 2: upon economy, just like in New Zealand, I think we

21
00:01:03,840 --> 00:01:08,119
Speaker 2: were faced with a lot of headwind that we weren't

22
00:01:08,160 --> 00:01:11,760
Speaker 2: accustomed to in that kind of setting. Then having a

23
00:01:11,840 --> 00:01:16,800
Speaker 2: mandate that has the central bank targeting inflation law and

24
00:01:17,000 --> 00:01:20,920
Speaker 2: stable inflation. It becomes a tough choice then for the

25
00:01:20,920 --> 00:01:26,119
Speaker 2: policymaker to handle the growth and labor side effects versus

26
00:01:26,200 --> 00:01:29,959
Speaker 2: the inflation. So I think in that regard they've done

27
00:01:30,040 --> 00:01:32,000
Speaker 2: they've done a they've done a quite well job.

28
00:01:32,720 --> 00:01:35,760
Speaker 1: She is an academic economist, and part of the issue

29
00:01:35,800 --> 00:01:38,240
Speaker 1: we would argue here is they've misread what we would

30
00:01:38,240 --> 00:01:40,400
Speaker 1: call the real world. In other words, they're too busy

31
00:01:40,520 --> 00:01:42,720
Speaker 1: sitting in meetings and offices and not you know, taking

32
00:01:42,760 --> 00:01:46,040
Speaker 1: the true vibe of the economy. Is that an issue

33
00:01:46,120 --> 00:01:48,120
Speaker 1: or has been an issue for the Reserve Bank in

34
00:01:48,160 --> 00:01:49,120
Speaker 1: Sweden as well or not?

35
00:01:51,320 --> 00:01:55,800
Speaker 2: In Sweden, industry transmission is very very fast because borrowing

36
00:01:55,880 --> 00:01:59,880
Speaker 2: costs a quite short term, rather flexible, especially the kind

37
00:01:59,880 --> 00:02:02,640
Speaker 2: of boring costs that matters for the household the long

38
00:02:02,760 --> 00:02:06,960
Speaker 2: term mortgage rates. So in that way, having any decision

39
00:02:07,000 --> 00:02:10,480
Speaker 2: that they've taken in terms of either the raids decision

40
00:02:10,639 --> 00:02:15,000
Speaker 2: or the guidance that they provide has transmitted quite fast

41
00:02:15,120 --> 00:02:19,720
Speaker 2: and through to the economy. Now in there our in

42
00:02:19,800 --> 00:02:23,520
Speaker 2: house scoring of Brayman's tenure as the first Deputy governor

43
00:02:23,520 --> 00:02:26,520
Speaker 2: at the ricks Bank, she's quite balanced and very inflation

44
00:02:26,639 --> 00:02:31,280
Speaker 2: focused and she considers domestic and international factors thoroughly in

45
00:02:31,320 --> 00:02:34,560
Speaker 2: her arguments, so that's going to show her quite well

46
00:02:34,600 --> 00:02:38,600
Speaker 2: as she moves to another small economy. But relative to

47
00:02:38,800 --> 00:02:41,840
Speaker 2: other executive board members at the ricks Bank, we rank

48
00:02:41,919 --> 00:02:46,520
Speaker 2: her as leaning slightly douvish, meaning she is, you know,

49
00:02:46,720 --> 00:02:51,040
Speaker 2: first and foremost targeting inflation, of course, but it's seemingly

50
00:02:51,120 --> 00:02:56,240
Speaker 2: favoring growth concerns a little bit more than the other members.

51
00:02:56,320 --> 00:02:59,519
Speaker 2: Just an example, she was one of the few dissenters

52
00:02:59,560 --> 00:03:02,600
Speaker 2: in favor of a smaller hike in twenty twenty three.

53
00:03:03,040 --> 00:03:06,840
Speaker 2: Now at the time, inflation was running at multiples of

54
00:03:06,840 --> 00:03:10,679
Speaker 2: the two percent target, and she said, well, no, the

55
00:03:10,720 --> 00:03:14,520
Speaker 2: team longer term outlook actually should prevent us from going

56
00:03:14,600 --> 00:03:19,160
Speaker 2: hard on that hike. So in that way, I think

57
00:03:19,400 --> 00:03:22,560
Speaker 2: she's going to be a quite well balanced person to

58
00:03:22,600 --> 00:03:23,600
Speaker 2: have at the HELM.

59
00:03:23,760 --> 00:03:26,360
Speaker 1: Great insight. Self appreciate it very much. Solva Boziki, who's

60
00:03:26,360 --> 00:03:30,120
Speaker 1: the Sweden economist for the Bloomberg Economics, I seemed like

61
00:03:30,639 --> 00:03:33,520
Speaker 1: a likable, approachable person and I take great hope from

62
00:03:33,560 --> 00:03:35,920
Speaker 1: the fact that yesterday, as I said, I think yesterday

63
00:03:35,960 --> 00:03:39,040
Speaker 1: on the program that we can attract international talent from

64
00:03:39,040 --> 00:03:42,119
Speaker 1: offshore still to the country, which says something about us reputationally,

65
00:03:42,120 --> 00:03:45,040
Speaker 1: which is good for more from the Mic Asking Breakfast,

66
00:03:45,200 --> 00:03:48,520
Speaker 1: listen live to news talks. It'd be from six am weekdays,

67
00:03:48,760 --> 00:03:50,800
Speaker 1: or follow the podcast on iHeartRadio