The term is meant to be disparaging, but I find it incredulous that many economists still see their discipline as a science – let alone a dismal one.
The New Zealand dollar hit A98.47c on the 31st March, setting a new record high against the Australian dollar and getting ever closer to reaching parity with the Australian dollar. The New Zealand dollar has been increasing in strength against the Australian dollar over the last five months after hitting a low of A88.80c in early November 2014.
The Reserve Bank has kept the Official Cash Rate (OCR) unchanged at 3.5 percent during its last OCR announcement (12 March) despite forecasts indicating that CPI inflation will fall to zero for the March 2015 quarter.
The Reserve Bank (RB) left the OCR unchanged at 2.5 percent today (14th March) suggesting that it will stay there “through to the end of the year”.
Alan Bollard believes it is prudent to hold the OCR at 2.5 percent, where it has remained since March 2011.