New Zealand Inflation Still Hopelessly out of Control

I complained about this a while ago. Am I allowed to quote my own posts?

How can he even be talking about reducing rates with inflation at least 3% higher than it should be? Don Brash would have never been so weak. Either Mr Bollard is bowing to political pressure, or the NZ economy is well and truly stuffed but doesn't know it yet.

Anti-dismal has a great post on the even worse situation now.

I find this [inflation getting out of control] all very depressing. In the country that's done more than any other to work to insulate its central bank from political pressures and to ensure bank independence, we've proven that a sufficiently determined government can completely erode that independence by appropriate eroding of the bright-line rules that characterized previous policy targets agreements, appointment of a dovish Governor, and sufficient winks and nudges about that there will be no consequence whatsoever to the Governor's ignoring of the target band.

Good to hear that those in the know are worried too. So what can we do about it? Er, not sure.

Comments

[Paul Walker]

"So what can we do about it? Er, not sure."

First, sack the governor of the RB
Second, sack the board of the RB

and replace both with people who actually want to fight inflation.

[The Optimist]

Yes I'm surprised that he can still have his job, given that he is missing his targets. But if the government doesn't understand the importance of keeping inflation under control, and they are the ones that enforce it, what hope for the new governor?

What evidence is there of political interference, other than the obvious comments made by a few ministers in the media?