This week the RBNZ raised interest rates 25bps. Why when so many businesses are shut down by decree of the government do they increase rates to create more unbearable pain. So many Hospitality businesses have been shut down for months in Auckland, surviving on savings and resurgence funds and still unable to meet staff wages bills and other expenses.Many have borrowed money, used up any savings they may have had and still face the possibility of going out of business.
Does the government really care?
I went to 2 supermarkets this week that according to the MOH website are places of interest due to contact tracing. I passed hundreds of people within a metre of me and when I left filled my car with petrol at a "Place of interest Petrol Station" Tell me how it is fair that these places can remain open, but a food outlet must remain closed or operate under massive restrictions that in essence do not allow them to have enough custom to generate a profit?
No other country in the world has raised interest rates this year except for New Zealand. The pain and suffering from this will be felt throughout the economy..
From Government statistics........
Inflation rate for the September 2021 quarter:
- quarterly inflation rate was 2.2 percent
- annual inflation rate was 4.9 percent.
In the September 2021 quarter compared with the June 2021 quarter, the CPI rose 2.2 percent (2.1 with seasonal adjustment).
- Housing and household utilities rose 2.6 percent, influenced by higher prices for home ownership (up 4.5 percent) and property rates and related services (up 7.0 percent).
- Transport rose 4.2 percent, influenced by private transport supplies and services (up 5.1 percent) and passenger transport services (up 17 percent).
- Food rose 2.7 percent, influenced by fruit and vegetables (up 11 percent) and grocery food (up 1.3 percent).
- Recreation and culture rose 2.9 percent, influenced by other recreational equipment and supplies (up 5.6 percent) and accommodation services (up 3.2 percent).
How much more pain can our people afford?