First interest rate review after the Christchurch quake
Audio, Radio New Zealand
RNZ Business Editor live from the Reserve Bank, where Governor Alan Bollard is reviewing interest rates, the first scheduled window since the Christchurch earthquake.
RNZ Business Editor live from the Reserve Bank, where Governor Alan Bollard is reviewing interest rates, the first scheduled window since the Christchurch earthquake.
The Reserve Bank Governor says he has acted pre-emptively in cutting the official cash rate to guard against the risk that the economic impact of the Christchurch earthquake might become especially severe. Are we in for an oil shock or not?
As a man stands up to his knees in liquefaction as Christchurch rocks in another aftershock he reads a newspaper which has one headline reading 'More severe aftershocks in Christchurch' and a second headline that reads 'I have an unshakeable belief in New Zealanders says next Gov. Gen.'. Context - Two earthquakes and hundreds of aftershocks have hit Christchurch, the first on 4 September 2010 and a second more devastating one on 22 February 2011. The new Governor General is Lieutenant General Jerry Mateparae; he takes over the role from incumbent Sir Anand Satyanand in August 2011. Quantity: 1 digital cartoon(s).
Text below the image reads 'More silence?..' Prime Minister John Key and the Governor General Sir Anand Satyanand and several 'hangers-on' almost suffer coronaries when an official suggests in discussions about 'cost-saving ideas' that 'One of the National Projects we could "reprioritise" in the wake of the earthquake is to axe any Kiwi VIP attendance at the royal wedding'. Context - The PM and Governor General are thought to be on the list for invitations to the wedding of Prince William and Kate Middleton but after the catastrophic Christchurch earthquake of 22 February 2011, which is going to cost the country billions, a wag wonders whether they should go. Quantity: 1 digital cartoon(s).
Governor of the Reserve Bank Allan Bollard holds a spade over his shoulder and a roll of toilet paper in his hand. Text reads 'Reserve Bank governor moves to restore confidence after the quake -' and Bollard says '..past the silver beet, left at the last of the beans and it's right by the caulis!' The little Evans man says 'What a relief!' Context - Two earthquakes and hundreds of aftershocks have hit Christchurch, the first on 4 September 2010 and a second more devastating one on 22 February 2011. Toilets have been a real problem after the earthquakes with thousands of chemical toilets and portaloos being shipped in - some people, however, use the old kiwi method of digging a long-drop in the back garden. The Reserve Bank has made a relatively large 50-point cut in its benchmark interest rate, the Official Cash Rate (from 3% to 2.5 per cent). Critics say that inflation is already running unacceptably high and there is a threat of much higher inflation in a year or two when the rebuilding of Christchurch begins to put pressure on limited resources. The Reserve Bank acknowledged these factors, but it has chosen instead to focus on the immediate impact of the earthquake on the economy and particularly on all-important business and consumer sentiment. (Press editorial 12 March 2011) Colour and black and white versions available Quantity: 2 digital cartoon(s).
A review of the week's news including: national earthquake memorial service announced, former defence chief to be new Governor General, Reserve Bank slashes official cash rate, Christchurch businesses say OCR cut alone won't save them, mounting concern over Christchurch World Cup prospects, government says 10,000 Christchurch homes will be demolished, alarm over possibility of mass demolition in CBD, international crews head home, petrol prices at three year high, Pike River mine receivers take control from police and boulder sold for thousands in aid of Christchurch
Finance Minister Bill English scratches his head with frustration as he stands up to his chest in earthquake rubble that represents the 'economy'. Allan Bollard the Governor of the Reserve Bank appears in gumboots asking if he can 'help with rebuilding..? by making an 'OCR cut'; he holds a collection box labeled 'OCR cut'. Context - Two earthquakes and hundreds of aftershocks have hit Christchurch, the first on 4 September 2010 and a second more devastating one on 22 February 2011. The Reserve Bank has made a relatively large 50-point cut in its benchmark interest rate, the Official Cash Rate (from 3% to 2.5 per cent). Critics say that inflation is already running unacceptably high and there is a threat of much higher inflation in a year or two when the rebuilding of Christchurch begins to put pressure on limited resources. The Reserve Bank acknowledged these factors, but it has chosen instead to focus on the immediate impact of the earthquake on the economy and particularly on all-important business and consumer sentiment. (Press editorial 12 March 2011) Quantity: 1 digital cartoon(s).