Larry Williams Drive

The longer that this economic funk that we find ourselves in goes on, the more that Jarrod Kerr of Kiwibank is being proven right, isn't he? And we had a cut today - it was 25 basis points down to 3 percent - and now there's the expectation that we will maybe get down to 2.5 percent before this thing bottoms out. 2.5 percent is where Jarrod Kerr has been saying for months that we need to get to. But even though he's been saying it since at least September last year, if not earlier, the Reserve Bank has only just caught up with him. Up til now, they've been talking about 2.75 percent, 3 percent maybe. Now, what you should take from this is that the Reserve Bank is surprised by what Jarrod Kerr - and you could argue many of us - have been seeing for ages, which is that the economy is properly, properly stuffed. Like, stuffed enough that they should be cutting a lot more than they are. Why this is a surprise to them is beyond me, because you just need to look at what's going on with businesses today to see