Sharesies co-founders Leighton Roberts and Sonya Williams invited interest.co.nz journalist Jenée Tibshraeny to discuss all things Budget and monetary policy on their Lunch Money podcast/webinar on Thursday.
While the discussion was targeted at retail investors who use the Sharesies platform, interest.co.nz readers might find it interesting and informative too.
Issues canvassed include government debt, whether inflationary pressures are temporary, the prospect of rising interest rates, the relationship between the Government and Reserve Bank, the future of QE or bond-buying, the implications of housing market policy changes, and what this all means for investors in equity markets.
The discussion gets a bit more crunchy about 6 minutes in.
15 Comments
VictimofOCR,
Were our RB to raise rates unilaterally, it would risk seeing a sharp spike in the exchange rate against the major currencies. That would make life harder for our exporters, though it would depress import prices.
My guess is that the RB will not be the first to raise the OCR.
Unfortunately Sharesies lost my respect when they tried to push the MyFoodBag IPO to their retail customers.
Jenee rightly points out that the Government has all this money (debt funded) just waiting to be fed into the economy to stimulate Covid recovery, etc.. However, my concern is that whenever Govt does actually announce some major spend, these seem to be just "gesture projects". For example, todays proposed dedicated pedestrian/cycleway bridge over Auckland harbour is a big spend which will almost certainly cost a lot more than their current forecast but apart from the actual bridge build itself, how does this really benefit the region's economy long term or help solve it's transport infrastructure problems? Does anyone in this government have any idea how to make the best of money spent?
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