Not everything important is measurable

The Reserve Bank's mandate should be tweaked, writes Dave McLeish. (Image: NZME)

Mon, 27 Oct 2025

The recent Reserve Bank of New Zealand decision to cut the official cash rate by 0.5% has me in two minds.On the one hand, New Zealand’s economy needs a boost, and lowering the cost of servicing our household debt will no doubt help in the near term.But, on the other hand, it’s unlikely to lift our economy in any sustainable way. In fact, if history is anything to go by, it’s more likely to reduce the country’s future potential growth rate.Monetary theory has fundamentally backfired.Ever since the Reserve Bank of NZ...

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