Barry Soper: ZB senior political correspondent on the impact of the latest OCR cut

The Reserve Bank says several factors are driving down inflation.

It's cut the Official Cash Rate to 5.25 percent, saying it's now confident inflation is returning to the one-to-three percent target range.

The Government is claiming credit for the turn-around - saying tax cuts and government spending cuts have been reducing inflationary pressure.

ZB senior political correspondent Barry Soper says the Government will have been waiting for this announcement. 

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Episode Transcript

Speaker 1 (00:00):
Barry Soper, Senior Political Correspondence with US. Now, hey Barry,
good afternoon, Heather. The government will be stoked at that
official cash right cart.

Speaker 2 (00:07):
Right, Well, yes it will be. I mean they'd be
on tenterhooks waiting for this, and it's the first cut
since March twenty twenty, so it's a hell of a
long time. In recent months, economic data shows that inflation
is under control or coming under control, unemployment is rising

(00:28):
and economic growth is stalling, which is the downside to it.
But both Chris Luxon and Nicola will has faced the
press gallery at Parliament a short time ago and the
first question that was asked of them was they seem
to be taking all the credit when in fact this
was the Reserve Banks decision. Well, that put them on
the front foot.

Speaker 3 (00:49):
And we've stopped adding costs on businesses that push up
prices like the ute tax and the Auckland Regional fuel
tax and landlord taxes like interest seductibility and bright line.
We've also reduced economic bottlenecks, cut red tape by restoring
ninety day trials and abolishing mandatory union bargaining and fixing
the triple CFA and support of that fiscal discipline and
economic plan. Inflation is now tracking down fast, down to

(01:12):
three point three percent from seven point three percent, which
is the lowest in three years.

Speaker 4 (01:18):
The cost of living crisis that New Zealand has endured
has been characterized by high inflation and high interest rates.
So today Marx an important milestone and beating both those beasts.

Speaker 2 (01:32):
And the point that Nichola Willis made was that if
inflation wasn't coming down, then they would be blamed for it.
So you can't win sometimes, can you. You know? I
think they have set the scene when you think of
the inflation the way the way it was fueled by
excess borrowing and money being shelled out by the last

(01:56):
labor government.

Speaker 1 (01:57):
Arry the boot camps are one as a fortnight and
one kidd is lead how much longer ago in the trunk? Oh?

Speaker 2 (02:03):
I think it's three months? Yes, about three months? And
I thought the Children's Minister Karen Shaw was actually quite
wise today putting out a statement and admitting that one
had pulled out. And obviously this kid was causing trouble
for his fellow participants. They say that it was in

(02:26):
his best interests, his funnel's best interests, and the other participants. Now,
what does that tell you? Ready? Between that line that
is that he was obviously a stir and he is
better off our Exactly what I love is, though, is
what they have to get up to in the morning.
These young people, they have to they have a set

(02:46):
morning routine, starting with breakfast, shower and military style drills.
Daily hygiene routines such as ensuring their rooms are clean,
clothes are ironed, and taking pride in their present day.
I think it's fantastic.

Speaker 1 (03:02):
How old are these kids seventeen around seventy?

Speaker 2 (03:05):
Look, I remember being in police School at TRENTAM when
I was around the same age. We had the same
requirements on us. And I'll tell you what, if you
didn't do it, you get a swift boot up the back.

Speaker 1 (03:14):
So you ever picked up an iron before you went
to police college?

Speaker 2 (03:17):
Oh? Yes? Okay?

Speaker 1 (03:18):
Well, I just think modern kids won't have.

Speaker 2 (03:20):
Well, they probably don't know.

Speaker 5 (03:22):
And it's not a reflection of whether they're naughty or not.
I just think that I just think we spoil a
little buggers. Now, speaking of which, we're going to start
the ironing tomorrow. Okay, So Luxeon's off to Australia tomorrow.

Speaker 1 (03:34):
He has been over a few times now, isn't He.

Speaker 2 (03:36):
Has been over, but this is his first official visit,
so you know, they make a big deal of this.
He'll on Friday go to Canberra after going to Sydney
tomorrow and he'll be talking a business essentially in Sydney
and then going off to have a chat with Albanzi,
who he says as an old friend. And of course

(03:56):
he will be speaking slowly and in mono big English.
I would imagine, although keeping it simple, should take a
sign language person over with him, although the accents might
get confused, as he did. But what I want and
as my bug bear, and of course it won't happen,
is the.

Speaker 1 (04:14):
Thetas to stop. It's not going to happen.

Speaker 2 (04:17):
Well, you know, since they've come how I was going
through the crimes that these people have committed, well over
three thousand now have come out of Australia, some of
them have no association with New Zealand just and seemed
to present it when she met with Scott Morrison as
though the situation was about to be basically made more humane.

(04:40):
But in fact they've tightened up and you've got that
fellow Peter Dutton He referred to the deportees you'll remember
as trade they are, Barry, well, some of them are.

Speaker 1 (04:51):
I don't want them either.

Speaker 2 (04:52):
Well, no, we don't want them. But you know these people,
some of them went there is Can I get that many?

Speaker 1 (04:58):
You can hardly? Like I tell you what if this
was news, if it was New Zealand, you'd be wanting
to toss on to No.

Speaker 2 (05:03):
I think we have to. I think you have to
take some responsibility. Is like a parent taking some responsibility
for your children. These people were born and brought up,
or not born, but brought up in Australia and learned
all their bad time.

Speaker 1 (05:16):
I'm glad you didn't become a cop because you would
have been a soft one. Actually, I've got a real champion.

Speaker 2 (05:21):
I would have been the commissioner then.

Speaker 1 (05:24):
Absolutely you and Andy. I've got a champion heading our way.
Five oh one d put I'll tell you about later, Barry.
We'll do it probably in the next hour or so.
Barry so for senior political correspondent.

Speaker 4 (05:34):
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