RBNZ urged to take up the Government’s mantra and ‘go for growth’

The New Zealand Institute of Economic Research’s (NZIER) Monetary Policy Shadow Board is recommending a 0.25% OCR cut tomorrow except Kiwibank chief economist Jarrod Kerr who says it should be 0.50%.

Kerr says the country needs Reserve Bank acting governor Christian Hawkesby to “go for growth” because it’s too hard for the Government.

“There’s no doubt the Kiwi economy needs support. There’s no doubt the RBNZ should be aiming to stimulate, not restrict, the economy. It’s just an argument around how much support is needed.”

He says Hawkesby could easily deliver a 0.50% move and signal another 0.50% to 2.5% to come. “That would set policy about right for a recovery. And it's not mucking around with 0.25% moves, delaying the inevitable.”