Trans-Tasman also agrees with our interpretation of the PM's comments on interest rates from earlier in the week
If there was a powerful political imperative in the Govt’s actions this week on transport costs, there was an equally powerful economic logic. The Govt is desperate for the Reserve Bank to begin cutting interest rates. The trading banks, hit by the international credit crunch, are raising mortgage rates well above the normal margin on the OCR. Where in the normal course of events, there’s sometimes a “nudge, nudge, wink, wink” over monetary policy, this was almost a shout across Bowen Street from the Beehive.
The Hive recommends to readers interested in New Zealand politics that they subscribe to Trans-Tasman. There is a special offer on right now.
