Home loan borrowers can expect rates to fall throughout the rest of this year and next, commentators say.
The Reserve Bank cut the official cash rate by 25bps to 5.25 percent on Wednesday.
While it was a move that was forecast by several economists, it was a u-turn from the bank’s position in May. Infometrics chief executive Brad Olsen described it as a “WTH moment” and “the biggest flip-flop ever”.
Even worse is the timing of the benefit reforms. (paraphrasing) RBNZ saying “so many people are gonna be unemployed because the number of jobs will shrink” and the government saying “these people would have jobs if they tried harder”.
Ah yes the nonsensical myth that the number of lazy people (so insanely lazy that they prefer to live below minimum wage) magically grows and shrinks in tandem with the economy and changes to the elasticity of the labour market …without being in any way related to it.