How much blame for the GDP drop can be placed at the feet of the Reserve Bank? 

GDP's fallen 0.9 percent in the June quarter – a much sharper drop than economists had been expecting. 

NZ Initiative Chief Economist Eric Crampton told Kerre Woodham what we’re feeling is an effect of getting inflation back in line, but he wouldn’t necessarily blame the Reserve Bank for the drop. 

He says it’s one big job is keeping inflation in the 1-3% band, and it largely forgot what it’s job was in 2020 and 2021, and went overboard with the spending. 

Crampton says he wouldn’t blame the bank’s current round of tightening, but rather the prior round of exuberance that required it.  

LISTEN ABOVE 

The podcasts in the SME Stream contain general information only, not financial or professional advice. Any opinions expressed in the podcasts are not necessarily shared by BNZ, or its related entities. BNZ is not liable for any losses resulting from the content of the podcasts. 

How much blame for the GDP drop can be placed at the feet of the Reserve Bank?&nbsp;
GDP's fallen 0.9 percent in the June quarter &ndash; a much sharper drop than economists had been expecting.&nbsp;
NZ Initiative Chief Economist Eric Crampton told Kerre Woodham what we&rsquo;re feeling is an effect of getting inflation back in line, but he wouldn&rsquo;t necessarily blame the Reserve Bank for the drop.&nbsp;
He says it&rsquo;s one big job is keeping inflation in the 1-3% band, and it largely forgot what it&rsquo;s job was in 2020 and 2021, and went overboard with the spending.&nbsp;
Crampton says he wouldn&rsquo;t blame the bank&rsquo;s current round of tightening, but rather the prior round of exuberance that required it. &nbsp;
LISTEN ABOVE&nbsp;
The podcasts in the SME Stream contain&nbsp;general information only, not financial&nbsp;or professional advice. Any opinions expressed in the podcasts are not necessarily shared by BNZ, or its related entities. BNZ is not liable for any losses resulting from the content of the podcasts.&nbsp;

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Looking for actionable business insights all in one place? 
We're here to help you find a way with a curation of the &lsquo;best bits&rsquo; from top business podcasts. 
Save time searching; subscribe to the SME Stream where you can listen to relevant, timely, business-related content today.&nbsp;
&nbsp;

The SME Stream

Eric Crampton: NZ Initiative Chief Economist on the GDP contracting 0.9%

As business owners, you know how hard it is keeping up with your business, let alone the news. Join Wilhelmina O'Keeffe each week as she gives you a rundown of the biggest stories that could impact your business, so you can make informed decisions with expert advice. 

This week, The OCR holds steady so will retail interest rates do the same? Another roadblock for the India free trade deal, and there’s positive signs for the retail sector, so can the industry finally breathe again? Plus … the new AI that’s less chatbot and more co-worker. 

As business owners, you know how hard it is keeping up with your business, let alone the news. Join Wilhelmina O'Keeffe each week as she gives you a rundown of the biggest stories that could impact your business, so you can make informed decisions with expert advice.&nbsp;
This week, The OCR holds steady so will retail interest rates do the same? Another roadblock for the India free trade deal, and there&rsquo;s positive signs for the retail sector, so can the industry finally breathe again?&nbsp;Plus &hellip; the new AI that&rsquo;s less chatbot and more co-worker.&nbsp;

SME Stream Weekly Wrap - 19 February

The Government will today reveal its back down on controversial Auckland housing intensification plans amid fierce public criticism.  

New planning rules would currently allow another 2 million homes in Auckland. 

But last month the Government announced it'll water down the rules with an announcement expected this afternoon.  

Prime Minister Christopher Luxon told Kerre Woodham a balance needs to be struck.  

He says Auckland has to grow with affordable housing, but quite rightly some Aucklanders have said they don't want big buildings next to their homes. 

He’s also allaying concerns about a proposal for a $9 toll on Auckland's Harbour Bridge. 

The Infrastructure Commission recommended tolling the existing bridge, and second new crossing, to reduce construction costs on the Crown.  

But Luxon told Woodham it's only an idea.  

He says the Government hasn't decided whether it'll be a new bridge or a tunnel yet, and decisions on how to fund it will come later. 

He says tolls are the only way to pull forward the development of new roads, faster. 

LISTEN ABOVE 

The Government will today reveal its back down on controversial Auckland housing intensification plans amid fierce public criticism. &nbsp;
New planning rules would currently allow another 2 million homes in Auckland.&nbsp;
But last month the Government announced it'll water down the rules with an announcement expected this afternoon. &nbsp;
Prime Minister Christopher Luxon told Kerre Woodham a balance needs to be struck. &nbsp;
He says Auckland has to grow with affordable housing, but quite rightly some Aucklanders have said they don't want big buildings next to their homes.&nbsp;
He&rsquo;s also allaying concerns about a proposal for a $9 toll on Auckland's Harbour Bridge.&nbsp;
The Infrastructure Commission recommended tolling the existing bridge, and second new crossing, to reduce construction costs on the Crown. &nbsp;
But Luxon told Woodham it's only an idea. &nbsp;
He says the Government hasn't decided whether it'll be a new bridge or a tunnel yet, and decisions on how to fund it will come later.&nbsp;
He says tolls are the only way to pull forward the development of new roads, faster.&nbsp;
LISTEN ABOVE&nbsp;

Christopher Luxon: Prime Minister takes talkback, discusses infrastructure, housing intensification, polls

Auckland Airport says it's gaining momentum.

It's reported a four percent increase in revenue in its half-yearly results. 

The airport says that lift in revenue is being driven by a two percent increase in passenger numbers to 9.6 million.

Chief Executive Carrie Hurihanganui says there's still more work to do - since numbers still haven't caught up to pre-pandemic levels. 

LISTEN ABOVE

Auckland Airport says it's gaining momentum.
It's reported a four percent increase in revenue in its half-yearly results.&nbsp;
The airport says that lift in revenue is being driven by a two percent increase in passenger numbers to 9.6 million.
Chief Executive Carrie Hurihanganui says there's still more work to do - since numbers still haven't caught up to pre-pandemic levels.&nbsp;
LISTEN ABOVE

Eric Crampton: NZ Initiative Chief Economist on the GDP contracting 0.9%

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