Briefly in the news from Aotearoa’s political economy around housing, poverty and climate on Wednesday, July 9:
The Reserve Bank of New Zealand has paused1 its rate cuts after its biggest policy easing in a decade. It considered cutting another 25 bps to 3.0% today, but decided on balance against it. But it won’t matter. The rate cuts aren’t working this time to fire up our economy, which is now even more of a housing-market-with-bits-tacked-on, in which the bits-tacked-on are getting even bittier and smaller. Paying subscribers can see more in The Lead below the paywall and hear more in my podcast above.
Most of the benefits of lower interest rates are being used by businesses, farmers and wealthier home-owners to repay debt, rather than expand lending, spending and investment. See more in The Sidebar below the paywall fold, and hear more in the podcast above.
The effects of higher term deposit rates and post-tax-tax incomes for older and wealthier households have also not flowed through into spending in the last three years, given these households’ much lower propensity to spend. See more below the paywall fold.
My heart broke reading the articles with today’s Quotes of the day below. 1News and 1News.
Today’s Must-Read is from Ruwani Perera for The Hui via Stuff: See more in my Pick ‘n’ Mix below.
Today’s flipside story is from Diana Clement via OneRoof: Beach elite trading up for the hot suburb next door. See more in my Pick ‘n’ Mix below.
There’s more detail and analysis for paying subscribers below the fold and in the podcast above. If we get over 100 likes I will open it up in full for public reading, listening and sharing.
