More Stupidity from the reserve bank act. Bollard Raises interest rates in case we dare to ask for wages to stay constant in real terms.

Kia-ora

Of course raising business interest rates beyond that of overseas competitors has no effect on prices and competitiveness. Right!! And interest rate rises of themselves are not a driver of inflation. Right!! And higher interest rates in NZ do not give windfall profits to overseas banks and finance companies. Right!! And lower wages and higher prices do not drive borrowing to live. Right!!