You can't bag the Monetary Policy Committee. 

Well, you can, but in this case, you would be fairly churlish. 

Personally, I would have held, but given the vote was done by consensus I clearly would have been a lone voice. 

Three hikes are coming, we may get them every other meeting, and we will end up with a cash rate of 3.25%. 

If you want the glass half full, look at Australia. Their cash rate is well into the 4% and inflation is far from over. And that’s before I get to the upcoming jobs issues, not to mention the property correction. 

But back to us. Inflation is why they are hiking and will continue to hike. 

But, and it's a big 'but', surely there is an argument that says it's not as bad as we feared? And not just that, it's peaked and is trending down – down to exactly where it needs it to be. 

Besides, a lot of the inflation remaining is council rates and cost-plus-accounting from power prices. 

The Taxpayers Union blames the Government, which is an Australian argument, but not applicable here. 

The Government has an operating budget of $2.1 billion, which is anaemic. We are $3 billion better off on latest figures than we thought. 

The Government is not blowing out the inflation. 

But the main reason I would have held is the psychology of pulling the trigger too soon. We are fragile. New Zealand loves a funk and we have been in a funk, and we don’t need misery merchants. 

The bank is clinical, which in part is their job. But a good part of any economy is the psychology of it, the vibe of it, the mood of it. 

We need help on the mood. We need a lesson to get on with it, and we need to be encouraged. A rate hike doesn’t do that. 

Look, this isn't a disaster. It's not even a bad mistake. It's probably just an unwelcome attitude driven by number wonks, not empaths, who could have been a bit more generous. 

New Zealand is on the move again. The bank says 25 points doesn’t hinder that. 

I'm not convinced they're right. 

You can't bag the Monetary Policy Committee.&nbsp;
Well, you can, but in this case, you would be fairly churlish.&nbsp;
Personally, I would have held, but given the vote was done by consensus I clearly would have been a lone voice.&nbsp;
Three hikes are coming, we may get them every other meeting, and we will end up with a cash rate of 3.25%.&nbsp;
If you want the glass half full, look at Australia. Their cash rate is well into the 4% and inflation is far from over. And that’s before I get to the upcoming jobs issues, not to mention the property correction.&nbsp;
But back to us. Inflation is why they are hiking and will continue to hike.&nbsp;
But, and it's a big 'but', surely there is an argument that says it's not as bad as we feared? And not just that, it's peaked and is trending down – down to exactly where it needs it to be.&nbsp;
Besides, a lot of the inflation remaining is council rates and cost-plus-accounting from power prices.&nbsp;
The Taxpayers Union blames the Government, which is an Australian argument, but not applicable here.&nbsp;
The Government has an operating budget of $2.1 billion, which is anaemic. We are $3 billion better off on latest figures than we thought.&nbsp;
The Government is not blowing out the inflation.&nbsp;
But the main reason I would have held is the psychology of pulling the trigger too soon. We are fragile. New Zealand loves a funk and we have been in a funk, and we don’t need misery merchants.&nbsp;
The bank is clinical, which in part is their job. But a good part of any economy is the psychology of it, the vibe of it, the mood of it.&nbsp;
We need help on the mood. We need a lesson to get on with it, and we need to be encouraged. A rate hike doesn’t do that.&nbsp;
Look, this isn't a disaster. It's not even a bad mistake. It's probably just an unwelcome attitude driven by number wonks, not empaths, who could have been a bit more generous.&nbsp;
New Zealand is on the move again. The bank says 25 points doesn’t hinder that.&nbsp;
I'm not convinced they're right.&nbsp;

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The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.The sharpest voice and mind in the business, Mike drives strong opinion,...

The Mike Hosking Breakfast

Mike's Minute: I'm not convinced the Reserve Bank was right

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/d87afac3-88d4-424c-9b42-b4810169efb3/transcript