1 00:00:00,160 --> 00:00:03,159 Speaker 1: God Father, due to see how good is that inflation 2 00:00:03,279 --> 00:00:05,840 Speaker 1: number out today? Two point two percent? We're there, baby, 3 00:00:06,040 --> 00:00:08,280 Speaker 1: They've got the thing beat pretty much bang on where 4 00:00:08,320 --> 00:00:11,840 Speaker 1: inflation's supposed to sit at two percent, which is exactly 5 00:00:11,880 --> 00:00:14,120 Speaker 1: halfway between one and three in the target band. So 6 00:00:14,200 --> 00:00:17,119 Speaker 1: we have made it. Got inflation whi's been out of 7 00:00:17,120 --> 00:00:19,759 Speaker 1: control in this country for three years, finally back to 8 00:00:19,760 --> 00:00:21,439 Speaker 1: where it's supposed to be. And I think that that 9 00:00:21,520 --> 00:00:24,599 Speaker 1: is absolutely reason to celebrate, isn't it? Isn't that good? 10 00:00:24,680 --> 00:00:29,080 Speaker 1: We're there, However, got a little problem on our hands, 11 00:00:29,120 --> 00:00:30,920 Speaker 1: which is the Reserve Bank, and I think we need 12 00:00:30,960 --> 00:00:32,839 Speaker 1: to talk about how badly these guys have stuffed the 13 00:00:32,880 --> 00:00:36,800 Speaker 1: situation up. I am stoked and very very very excited 14 00:00:36,800 --> 00:00:39,720 Speaker 1: that we're at two point two percent today, but that 15 00:00:39,800 --> 00:00:44,200 Speaker 1: number is also, unfortunately a pretty clear signal of how 16 00:00:44,240 --> 00:00:46,360 Speaker 1: badly the Reserve Bank has stuffed this up, because look 17 00:00:46,360 --> 00:00:48,639 Speaker 1: at where the official cash rate is still sitting. It's 18 00:00:48,680 --> 00:00:51,040 Speaker 1: still at four point seventy five percent. So we've got 19 00:00:51,080 --> 00:00:53,559 Speaker 1: inflation exactly where we want it, and yet we've got 20 00:00:53,600 --> 00:00:55,960 Speaker 1: an official cash rate that is higher than what the 21 00:00:55,960 --> 00:00:59,240 Speaker 1: Aussies have. Now. Explain that to me, because our inflation 22 00:00:59,920 --> 00:01:03,360 Speaker 1: is where it's supposed to be, almost bang on. Our 23 00:01:03,480 --> 00:01:07,360 Speaker 1: OCR is sitting at four point seventy five percent. Australia's 24 00:01:07,400 --> 00:01:10,839 Speaker 1: inflation is still out of control. Their OCR is lower 25 00:01:10,880 --> 00:01:12,640 Speaker 1: than ours at four point three five percent. How does 26 00:01:12,680 --> 00:01:16,280 Speaker 1: that happen? That happens because our Reserve Bank overdid it. 27 00:01:16,319 --> 00:01:19,600 Speaker 1: They overdid it when they hike when they were pumping 28 00:01:19,600 --> 00:01:21,959 Speaker 1: the money in to the system, and then they overdid 29 00:01:22,000 --> 00:01:24,200 Speaker 1: it and they started raising the official cash rate and 30 00:01:24,200 --> 00:01:26,560 Speaker 1: they can't get it down fast enough. They're trying very 31 00:01:26,560 --> 00:01:28,520 Speaker 1: hard to get it down fast. They're dropping the official 32 00:01:28,520 --> 00:01:31,000 Speaker 1: cash rate faster now than they expect it to and 33 00:01:31,040 --> 00:01:32,600 Speaker 1: I reckon they're going to have to go even faster. 34 00:01:33,160 --> 00:01:35,399 Speaker 1: Watch the number of economists now line up to save 35 00:01:35,440 --> 00:01:37,800 Speaker 1: fifty basis point cut November is not going to be enough. 36 00:01:37,920 --> 00:01:40,399 Speaker 1: I mean, a few months ago we thought fifty basis 37 00:01:40,400 --> 00:01:42,880 Speaker 1: points was a crazy idea. Now we're talking about the 38 00:01:42,920 --> 00:01:45,480 Speaker 1: possibility of seventy five in the next month, because we 39 00:01:45,520 --> 00:01:47,600 Speaker 1: need to get that OCR down fast, because the thing is, 40 00:01:47,640 --> 00:01:49,120 Speaker 1: the longer that it stays as high as it is 41 00:01:49,240 --> 00:01:52,600 Speaker 1: right now, the more people will lose their jobs, more 42 00:01:52,600 --> 00:01:55,280 Speaker 1: people will lose their houses, the more people will lose 43 00:01:55,320 --> 00:01:57,240 Speaker 1: their businesses. That is the cost of the Reserve Bank 44 00:01:57,280 --> 00:02:00,320 Speaker 1: banking a mistake. The Reserve Bank doesn't get latitude like 45 00:02:00,360 --> 00:02:03,680 Speaker 1: the rest of us do. Right. Worst case scenario, if 46 00:02:03,720 --> 00:02:05,280 Speaker 1: I stuff up my job, as there are some kids 47 00:02:05,320 --> 00:02:07,280 Speaker 1: who hear a swear word, that kind of thing, do 48 00:02:07,320 --> 00:02:10,120 Speaker 1: you know what I mean? Worst case scenario if a 49 00:02:10,160 --> 00:02:13,359 Speaker 1: builder does something a bit fun things are But on 50 00:02:13,480 --> 00:02:16,720 Speaker 1: a lean worst case scenario, if these guys stuff things up, 51 00:02:16,760 --> 00:02:19,240 Speaker 1: people lose their jobs, their businesses, and their homes. So 52 00:02:19,280 --> 00:02:20,920 Speaker 1: they don't get the latitude the rest of us too. 53 00:02:20,919 --> 00:02:22,880 Speaker 1: They've got to nail this stuff. You want to know 54 00:02:22,919 --> 00:02:25,919 Speaker 1: the best that The worst bit rather about how badly 55 00:02:25,919 --> 00:02:28,040 Speaker 1: they've stuffed it up, is that we will still be 56 00:02:28,080 --> 00:02:30,360 Speaker 1: paying the price for where the OCR is sitting right now, 57 00:02:30,400 --> 00:02:33,760 Speaker 1: which too high, for probably another year, because that is 58 00:02:33,800 --> 00:02:35,959 Speaker 1: how long it takes the OCR to wash through the system. 59 00:02:36,000 --> 00:02:38,800 Speaker 1: So we've got inflation officially in the right place today 60 00:02:39,280 --> 00:02:42,480 Speaker 1: sixteen October twenty twenty four, but we are still going 61 00:02:42,560 --> 00:02:46,200 Speaker 1: to be punished by an overly high OCR for another 62 00:02:46,360 --> 00:02:49,480 Speaker 1: year through to October twenty twenty five. So yeah, the 63 00:02:49,480 --> 00:02:52,840 Speaker 1: inflation fight absolutely is over. But the punishment got a 64 00:02:52,880 --> 00:02:55,720 Speaker 1: way to go yet, haven't we? For more from hither 65 00:02:55,840 --> 00:02:59,200 Speaker 1: Duplasyellen Drive, listen live to news talks it'd be from 66 00:02:59,240 --> 00:03:02,880 Speaker 1: four pm we or follow the podcast on iHeartRadio.