Article in the herald this morning criticising Adrian and the RBNZ. A Jenny Ruth article so does not seem to appear in the online herald. here is a link if you have a business desk subscription.
I think it may be the same article.
https://businessdesk.co.nz/article/o...money-printing
Much easier to criticise in hindsight but when Adrian was talking about setting up the trading banks for negative interest rates some people must have been thinking that he was an idiot at that time.
Why are trading banks making big bucks??
https://www.msn.com/en-nz/news/natio...c397abf2fb7f81
According to John Kensington, head of banking and finance at KPMG.
Kensington explains how New Zealand, up until Covid-19, had an "astonishing" period of economic growth where people were confident and bought up large in property, which in turn made the banks grow.
Really? are you sure it wasn't that since the 2008/09 bailouts people know that central banks had their backs so had no concerns taking on larger and larger amounts of debt. Is more debt the same as economic growth? Is John confusing economic growth with the wonder years when we had asset price inflation without the horrible CPI stuff that we have now. I guess as rents followed house prices up and people started living in cars it was not inflationary.
John Kensington would be a lot smarter than me so I guess he must be right. He also points out that the people making out like bandits in the NZ property market with Kiwis buying houses off each other for higher and higher prices is the Australian bank shareholders, so a large chunk of wealth heading offshore to Australia. Thanks Adrian.