May 7, 2008

PM To Bollard : Interest Rate Cut Please

Interesting item on Morning Report just before 0730 (link now up - the last three minutes of this piece) with the PM making it quite clear that she wants Bollard to move faster on interest rate cuts now that the EMS isn't going to impact on transport costs next years (an impact that had been expected to increase the CPI by 0.25%). A cut by Dr Bollard in the September/October period would be fully in line with The Hive's predictions. The PM's comments and the delay in implementing the EMS now mean that a cut is even more likely.