Monday, June 11, 2007

I cannot say how much dread and foreboding this incites

For your information the Reserve Bank released this news release a short
time ago

News release

11 June 2007, 3.45pm

Reserve Bank confirms forex intervention

The Reserve Bank confirmed it has intervened today in the foreign
exchange market to sell New Zealand dollars.

Reserve Bank Governor Alan Bollard said: "As stated in our June
Monetary Policy Statement, we regard current levels of the exchange rate
as exceptional and unjustified in terms of the economic fundamentals.

"This action does not prejudge the future direction of monetary policy,
which as always will remain dependent on emerging economic trends.

"The action is consistent with clause 4(b) of the Policy Targets
Agreement, which requires monetary policy to avoid unnecessary
instability in the exchange rate."

For further information contact:
Mike Hannah
Head of Communications
Ph 04 4713671, 021 497418,

Budget and Economy conference

Had a fascinating evening at the FINSIA Government Speaks event on Wednesday with Tony Alexander, Bill English and Phil Goff giving their views on the budget and economy; enlivened via the expert MC in Barry Soper.

Of course it probably would have been even better had Trevor Mallard turned up as scheduled rather than scarpering at the last moment to Valencia as he realised that otherwise he was going to miss his photo shoot opportunity with Team NZ winning.Typical of politicians in general, but the current administration in particular; sod any other commitments if there is a good looking photo on offer...

Bill English, despite looking like he'd just stepped off a flight back from Europe with too much 1st class alcohol, gave a pretty god account;but the real star speech of the night certainly went to Tony Alexander. With Billy Bowden (of old) exuberance he gave some interesting and challenging views on the economy, direction and views on what the Reserve Bank has and should be doing around inflation.It's just a shame that he needed to heavily contradict himself under questioning around the points of consumer import spending being a one off catchup under the high dollar (his view); as this significantly weakened his arguments that otherwise would have had a greater impact on my viewpoints.

Overall though a spectacular event; and looking forward to the next!