If growth is the game we're in then the Reserve Bank should keep cutting interest rates. 

The problem is growth is not the game they're in. They're in the business of taming inflation, and that's about it. 

The Government ditched the dual mandate —introduced by the last lot— that saw Adrian and Co. also focus on keeping people in jobs. Maximum sustainable employment. 

That's now gone and inflation's in the band. 

So the bank is going to take things slow. Ease the next few cuts over a longer period of time out of fear they'll overcook it again.

They'll be thinking about Trump's tariffs and the fear of price hikes, even though these haven't materialised —even in the data out of the States— as yet.

They'll be worried about the Middle East and the price of oil. 

It's an imported cost and it's in everything, not just our cars, but transport of goods, production, you name it. 

It directly and indirectly contributes up to 30% of our inflation when the price is high – like when somebody's dropping bombs in the Middle East. 

But that wouldn't be my main concern if I was setting monetary policy. 

Sure we'll get a solid growth number of around 0.7% for Q1 on Thursday, but there've been a couple of signs this week of things being a bit shaky in Q2 – the one we're in now. 

Yesterday it was a Mayday call from the services sector – going backwards for the month, again. This time, a bigger drop than last. And again, way out of whack with our trading partners.

Our golden dairy run will continue but there are signs production will be up this year on last, which could effect price. 

Cutting rates sooner and faster would help avoid any surgical complications as we revive the economy, which as been a very sick patient for a very long time. 

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.

If growth is the game we're in then the Reserve Bank should keep cutting interest rates.&nbsp;
The problem is growth is not the game they're in. They're in the business of taming inflation, and that's about it.&nbsp;
The Government ditched the dual mandate &mdash;introduced by the last lot&mdash; that saw Adrian and Co. also focus on keeping people in jobs. Maximum sustainable employment.&nbsp;
That's now gone and inflation's in the band.&nbsp;
So the bank is going to take things slow. Ease the next few cuts over a longer period of time out of fear they'll overcook it again.
They'll be thinking about Trump's tariffs and the fear of price hikes, even though these haven't materialised &mdash;even in the data out of the States&mdash; as yet.
They'll be worried about the Middle East and the price of oil.&nbsp;
It's an imported cost and it's in everything, not just our cars, but transport of goods, production, you name it.&nbsp;
It directly and indirectly contributes up to 30% of our inflation when the price is high &ndash; like when somebody's dropping bombs in the Middle East.&nbsp;
But that wouldn't be my main concern if I was setting monetary policy.&nbsp;
Sure we'll get a solid growth number of around 0.7% for Q1 on Thursday, but there've been a couple of signs this week of things being a bit shaky in Q2 &ndash; the one we're in now.&nbsp;
Yesterday it was a Mayday call from the services sector &ndash; going backwards for the month, again. This time, a bigger drop than last. And again, way out of whack with our trading partners.
Our golden dairy run will continue but there are signs production will be up this year on last, which could effect price.&nbsp;
Cutting rates sooner and faster would help avoid any surgical complications as we revive the economy, which as been a very sick patient for a very long time.&nbsp;
The podcasts in the&nbsp;SME&nbsp;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.

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