Reserve Bank risks

Whether or not history will determine if the Reserve Bank Governor has acted recklessly with New Zealand’s economy by going hard and fast over the Official Cash Rate (OCR), time will tell.

The impact of interest rate hikes takes time to filter through the economy and influence people’s spending patterns.

Trying to tame the inflation beast by triggering a recession seems harsh to all hard-working Kiwis.

New Zealand is a low productivity country which results in low wages. Throwing down the gauntlet to people by telling them to save rather than spend is OK if you are in the $100,000 per annum category, but for the average Kiwi who is already struggling to balance their income and expenditure it is a bit ‘‘on the nose’’.

The fallout from the predicted recession will increase demand on foodbanks already seeing high levels of demand as the cost of living tide rises further up the income scale, dragging in blue and white collar jobs.

[Finance Minister] Grant Robertson’s award of a further five-year contract to Adrian Orr goes against corporate governance best practice where three years is the maximum recommended norm.

If it all turns to custard you are stuck with the perpetrator of monetary failure. Guy Dobson, Levin