Monday, June 15, 2009
No liftoff in economy
On June 11, the Reserve Bank kept the official cash rate at 2.50 per cent, prompting the above cartoon in the June 12 edition of the Manawatu Standard. Looking at movements in the rate during the past few years, it's hard to believe that, between July 2007 and June 2008 it was unchanged at 8.25 per cent.
Bank interest rates on the deposits of pensioners are still appallingly low, though they have recently moved to about 4.25 per cent. Someone in the office says, "I'm waiting for the suicide rate among pensioners to skyrocket".