The Reserve Bank looks at wealth distribution – not asset prices

The Reserve Bank looks at wealth distribution – not asset prices
Reserve Bank governor Adrian Orr should not have published incomplete research. (Image: Getty)
Jenny Ruth
Is it possible to look at the impact on wealth distribution of cutting interest rates without looking at what happened to asset prices?The Reserve Bank of New Zealand (RBNZ) thinks it can. In an "analytical note" titled "Monetary policy easing and the distribution of wealth in New Zealand", RBNZ researchers Karsten Chipeniuk and Gulnara Nolan said the impact of capital gains "will be investigated in future work".That omission allows them to conclude: "We find that a 50-basis point reduction in the OCR (of...

More Finance

IRD issues warning to crypto holders ahead of audits
Finance

IRD issues warning to crypto holders ahead of audits

The IRD has identified 227,000 crypto-asset users in NZ and contacted those at risk.

$1.65b project to simplify switching banks a 'flop'
Finance

$1.65b project to simplify switching banks a 'flop'

Open banking has hindered competition rather than helping it, says lobby.

AAP 11:00am
MTF to investigate bullying claims
Finance Exclusive

MTF to investigate bullying claims

Chief executive Chris Lamers said he takes the claims 'very seriously'.

Payments NZ could play key role in open banking standards
Finance

Payments NZ could play key role in open banking standards

A draft decision proposes an 18-month approval, rather than the five years requested.

Ben Moore 01 Jul 2024