However, the pricing of floating-rate mortgages appears unusually high over recent months and we believe there is some scope for further reductions in these rates without compromising the viability of this lending.

It’s true that the big whinge was a month ago. I do find it odd that the same whinge continues a week prior to making the opposite complaint.

Like I said greater central bank transparency globally has only confirmed what many already suspected.

My suspicions were confirmed when being closely involved with the Stg ERM ejection debacle. The market is way smarter and has bigger resources than any central bank. The central bank mandate and structure has allowed untold riches to be siphoned out of global markets over the last 20 years.

At some point NZ will need to reassert its monetary sovereignty. I do hope its sooner rather than later because I really love living here 🙂

“Given that some banks have not passed on the most recent OCR cuts to borrowers, we asked how the Reserve Bank has been applying pressure to banks to reduce their interest-rate margin. The governor said he had talked to chief executives of banks about the wide gap between the OCR and their interest rates, and was considering discussing it with the banks’ boards of directors… [the RBNZ] believed that banks would eventually pass on OCR cuts if the Reserve Bank continued to pressure them to do so.”

“We noted that competition between banks for savings has pushed up interest rates for deposits. The Reserve Bank was not concerned at this phenomenon, as it believes interest rates should be determined by the market.”

Let’s be honest, this has been going on for quite sometime. Bollard mistakenly believed that anyone outside the markets was interested in what he had to say. Everyday people are told not to smoke, drive fast or drunk, spend more than they have, save etc etc etc. I’ve lost track of the inconsistent statements he’s made over the last 2 years.

I think the people would rather see more action and less talk. The disrobing of the banking officialdom over the last few years has taught people only that their monetary chiefs are as human as themselves and that quite frankly they make exactly the same mistakes.

Message to Bollard from the famous Mexican gold analyst, Tuco, il cattivo: “if you’re gonna shoot, shoot don’t talk”