RBNZ will be feeling the heat as critics assail its focus on climate change – and mention bank research to buttress their stance

That whistling   sound out  of  Wellington  has  come  from the Establishment  as  it  witnesses  a powerful attack   on  the  Reserve Bank. 

One volley has been fired by senior economist Matt Burgess in a research note for the  Wellington-based think-tank,  the  NZ  Initiative.  In Climate of fear: How the Reserve Bank is overstepping its mandate, he documents what he maintains are serious breaches of the RBNZ’s responsibilities as regulator of the financial system, including one instance of misconduct, as it becomes unduly preoccupied with climate change.

A second volley was fired by the NZ Initiative’s chief economist, Eric Crampton, in an article posted by Newsroom.  He raises questions about the RBNZ’s independence from political interference. 

A third has been fired by an experienced business journalist, Jenny Ruth, in an article for Business Desk.  She has questioned the bank governor’s credibility. 

All three refer to the RBNZ’s recent Climate Changed report, which included a strongly worded threat to the institutions it regulates.

Polls bring Labour back to earth while a warning is sounded about the need to brace for next economic crisis

So how  is  the  political landscape looking as the country  inches  slowly  towards   the goal  of  being 90%  vaccinated against Covid-19?

The  government  which  just 12  months   ago  was  blissfully floating beyond electoral threat somewhere  in the  political stratosphere  has  come  back  to  earth with something  of  a thud.

But National,  still  apparently  without  the  capacity  to  strike  the  wavelength  to  reach the  public  as  it  did in its  heyday, has   yet to find  its  old  mojo.  By  comparison, ACT  has been  flexing   a  new kind of   muscularity, without  suggesting  it has  yet  the  ability to  land  a  killer  punch

Meanwhile  a group  of  top  economists  is  warning   that  the  seeds  of  the  next   economic  crisis  have  been  sown. The steps taken by countries, including New Zealand, to counter the economic impact of Covid-19 have masked and in some cases exacerbated the risks.

“The Covid-19 financial support package has kept Kiwis off of the dole queue and saved many businesses from bankruptcy,” report co-author Bryce Wilkinson​ said.

“However, the government should promptly repay those debts in order to be prepared for the next financial shock. Failing to prepare now for the next financial crisis could destroy New Zealanders’ nest eggs and threaten their livelihoods.”