Another Top-Half of the OECD effort

Congratulations, the Government has achieved another "top-half" of the OECD moment.

Again it is for the wrong reasons.

The Reserve Bank has given us the highest interest rates in the OECD, as if that will stop the problem.

I’ll give you a reason why it won’t work.

My brother who works for a multi-national company and is currently based in Korea and paid in US dollars can borrow large amounts of money at 1% interest, he can then spend that money in New Zealand or just stick it in the bank and cream it, the interest or returns making far more than the 1% he has to pay which he covers from his rather large salary.

The Japanese are similarly placed and will continue to do the same, especially when the best you can get in interest in a bank in Tokyo is about 0.8%