Early Edition with Kate Hawkesby

While I was away tramping all over the top of the Coromandel Peninsula, we had some good and bad news.  GDP came out better than we expected with a rise of 0.7% in the fourth quarter, which should signal the start of green shoots and recovery and confidence.   But at the same time, the consumer confidence figure came out and it was the worst we’ve seen since the 90s.   And then Paul Bloxham, the Australian economist who invented the rock star economy name, came out and said our recession has been the worst in the OECD.   So why aren’t we confident? And why was our recession so hard? Here’s my take: the Reserve Bank and the Government need to start working together.   During the pandemic the bank slashed interest rates while the Government turbo charged spending, leading to a hangover that needed medicine.   The previous Government was rightly blamed for the mess it was responsible for but we had been double hit by the bank and the Government. All levers pulled.   The new Gov