I’m feeling sick today, so I won’t be able to write much. As a result, I’m going to link to a good article over at the Rate’s Blog by Bernard Hickey.
I agree with his conclusion that the NZ banking system is in good hands – however, it is important to remember that it was trouble in the banking system that lead to the great depression. As a result, the outlook for our banks will be incredibly important over the coming year – a factor that the RBNZ is definitely keeping an eye on.
Who knows, the real reason why the RBNZ is cutting rates and the RBA is on the verge of cutting may be issues in the banking sector (definitely something they would know and we wouldn’t).