Entries by Matt Nolan

February 2008 Treasury economic indicators

I normally don’t have much to say on the economic update provided by Treasury each month, as it is mainly just a look back at historical data. However, this time around they seem to have infused their release with negative undertones – suggesting that Treasury may be looking at providing a weaker set of forecasts […]

Capital market intervention: How can we make it sound like a good idea?

A post at Kiwiblog reminded me of an issue I have wanted to discuss for a while – the optimality of capital market intervention. In this post I aim to discuss some of the basic issues surrounding capital market intervention from a selfish-country perspective.  Furthermore, I want to paint a picture where capital market intervention […]

March 2008 MPS: Rates on hold at 8.25%

It came as no great surprise that the official cash rate was left on hold today. As a result, attention should move to the statement and the forecasts. What struck me in the statement was this: “The outlook for economic activity has deteriorated somewhat since we reviewed the OCR in January.” That has to be […]

RBA lifts rates to 7.25%

Yesterday the Reserve Bank of Australia lifted their official cash rate to 7.25%, only 100 basis points off the New Zealand rate. The accompanying statement is here. I’m still unsure about how to read these new RBA statements – they are a little less focused than the RBNZ ones, often trying to focus on as […]