annual headline inflation had risen to 4.3 per cent<\/a>; higher than New Zealand\u2019s 3.7 per cent.<\/p>\n\u201cThe RBNZ did hike more aggressively in 2022,\u201d Mr Oliver said about the lower inflation across the Tasman. <\/p>\n
\u201cThat weakened the New Zealand economy a lot more than our own economy… they have had recession, whereas we haven\u2019t. And so consequently, inflation was knocked a lot lower and more sustainably lower.<\/p>\n
\u201cNew Zealand does have this track record of bouncing from one extreme to another. <\/p>\n
\u201cIt raises rates too much and then it tends to cut rates too much… It looks like a yo-yo relative to Australia.\u201d<\/p>\n
Mr Oliver said that post-Covid, the RBA was \u201ctrying to traverse the narrow path and hold on to the gains on employment, perhaps more than the RBNZ was… it meant that we didn\u2019t stamp inflation down as sustainably as it could in those other countries\u201d.<\/p>\n
Australia\u2019s unemployment rate of 4.7 per cent is substantially lower than New Zealand\u2019s (5.6 per cent).<\/p>\n
Mr Oliver suggested that it was better for central banks to focus on taming inflation rather than unemployment.<\/p>\n
\u201cIf you just try to keep unemployment down and forget about inflation, you\u2019re going to end up with a worst of both worlds scenario, and no one will appreciate it; because everyone\u2019s harmed by high inflation.\u201d<\/p>\n
Speaking after the September inflation data was released, RBA governor Michele Bullock hinted that a Melbourne Cup hike was on the cards. <\/p>\n
\u201cWhat we have evidence on is on inflation, and the evidence there is it is far too high,\u201d she told a Senate estimates hearing on Wednesday.<\/p>\n
The expected hike would take the cash rate to the highest level since the global financial crisis in 2008.<\/p>\n","protected":false},"excerpt":{"rendered":"It might be time to book that holiday across the Tasman. The New Zealand dollar has plunged against…\n","protected":false},"author":2,"featured_media":660430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[297196,297232,297195,297230,297211,297192,297246,186247,297218,297231,297189,289966,165361,297253,297256,297251,297236,297255,266199,297198,297219,297254,297217,297207,297209,297216,297199,297237,297235,297249,297197,297221,58945,972,297191,1877,422,297214,114,8546,17207,297252,13282,2029,184,2116,21495,297244,297222,95144,120533,23602,85,932,4486,297229,46,297213,297250,297187,14544,297223,190,297200,18330,2101,227906,297224,297212,1630,260196,13003,272157,239383,297248,297208,297203,136397,163881,6204,5995,285474,28880,1973,1360,297201,297186,219219,297188,297228,297190,297241,297193,297220,249728,297234,297215,277534,297202,111764,277513,297206,297205,297242,297239,123579,297233,297194,297240,297243,285468,297225,249750,297245,297226,297204,216293,297185,281911,297238,762,244,297227,2958,45949,7128,297210,297247],"class_list":["post-660429","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-demolished","tag-s-3-7","tag-s-central-bank","tag-s-purchasing-power","tag-s-surprise-decision","tag-s-unemployment-rate","tag-0-79-aud","tag-1-6","tag-13-years-on","tag-13-year-low","tag-2-75","tag-289966","tag-165361","tag-4-3","tag-4-7","tag-4-85","tag-5-6","tag-a-level","tag-a-lot","tag-a-melbourne-cup-hike","tag-a-more-attractive-place","tag-a-new-zealand-holiday","tag-a-senate-estimates","tag-a-sharp-sell-off","tag-a-shock-rates-decision","tag-a-worst","tag-a-yo-yo","tag-accm-prime","tag-all-big-four-banks","tag-amp-chief-economist-shane-oliver","tag-annual-headline-inflation","tag-another-25-basis-point-rate-hike","tag-aussies","tag-australia","tag-australian-exports","tag-bloomberg","tag-book","tag-both-worlds-scenario","tag-business","tag-cash","tag-cent","tag-cent-it","tag-central-banks","tag-director","tag-economy","tag-employment","tag-evidence","tag-fixed-rate-mortgages","tag-glenn-yin","tag-goods","tag-high-inflation","tag-hike","tag-il","tag-inflation","tag-interest-rates","tag-interest-rates-and-bond-yields","tag-israel","tag-its-aussie-counterpart","tag-its-lowest-point","tag-kiwi-dollar","tag-kiwis","tag-march-2013-it","tag-markets","tag-markets-and-economists","tag-melbourne","tag-money","tag-mortgage-holders","tag-most-homeowners","tag-mr-oliver","tag-new-zealand","tag-news-com-au","tag-next-week","tag-no-one","tag-nz-dollar","tag-one-extreme","tag-other-countries","tag-our-own-economy","tag-post-covid","tag-rate-hikes","tag-rates","tag-rba","tag-rba-governor-michele-bullock","tag-rbnz","tag-recession","tag-research","tag-september-data","tag-shock-rates","tag-shockwaves","tag-some-aussie-businesses","tag-that-holiday","tag-that-pain","tag-the-aussie-dollar","tag-the-australian-dollar","tag-the-cards","tag-the-cash-rate","tag-the-currency-market","tag-the-ditch","tag-the-evidence","tag-the-exchange-rate","tag-the-fall","tag-the-gains","tag-the-global-financial-crisis","tag-the-highest-level","tag-the-kiwi","tag-the-lower-inflation","tag-the-move","tag-the-narrow-path","tag-the-new-zealand-dollar","tag-the-new-zealand-economy","tag-the-official-cash-rate","tag-the-rba","tag-the-rbnz","tag-the-reserve-bank","tag-the-september-inflation-data","tag-the-situation","tag-the-tasman","tag-the-time","tag-this-track-record","tag-this-year","tag-those-other-countries","tag-time","tag-travel","tag-twice-the-number","tag-unemployment","tag-variable","tag-wednesday","tag-wednesday-the-expected-hike","tag-westpac-chief-economist-luci-ellis"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/660429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=660429"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/660429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/660430"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=660429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=660429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=660429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}