OPINION: To the average Kiwi, Graeme Wheeler may seem far from exciting, but the Reserve Bank governor is becoming increasingly unpredictable.
While this will make Thursday’s review of the official cash rate – the benchmark rate which determines the returns on bank deposits and the cost of getting a mortgage – more interesting, it is not meant to be that way.
Back in 2000, former Bank of England governor Mervyn King famously said “a successful central bank should be boring”.
Like a good referee, by the time reaches decision day, the decision itself should not really be the news. Speeches and comments in the lead-up should guide the market ahead of time.
* Interest rate call on knife edge with Reserve Bank communication under fire
* Senior Reserve Bank officials accuse former colleague of having a ‘victim filter’
* Not in NZ’s ‘economic interests’ to release interest rate votes – Reserve Bank
* NZ Reserve Bank expected to hold rates this week, but future cuts ‘inevitable’
* Banks may seek to recover lost margins by passing on little of OCR cut
* Reserve Bank drops OCR to 2.25 per cent but banks may keep some for themselves