RBNZ governor should have sought advice before signing letter of support for US Fed boss Jerome Powell

Source: Radio New Zealand

https://players.brightcove.net/6093072280001/default_default/index.html?videoId=6387923407112

The Reserve Bank governor Anna Breman shouldn’t have signed a letter of support for US counterpart Jerome Powell without first consulting the Ministry of Foreign Affairs, the Finance Minister says.

Nicola Willis made the comment to media after Prime Minister Christopher Luxon was asked about Foreign Minister Winston Peter’s stinging remark that the governor should “stay in her New Zealand lane”.

Breman was one of a number of international central bankers who signed the letter supporting the US Federal Reserve head last week.

Powell has been pushing back to maintain the Federal Reserve’s independence after being served criminal charges by the US Justice Department.

Willis said she spoke to Breman the day after she signed the letter and asked why the governor had not informed her earlier.

“She put to me that she had been reluctant to contact me at 3am in the morning. I said to her ‘Look I’m available any time’ and that’s what New Zealanders expect of me.”

Willis said she made it clear to Breman that if she’d contacted her boss it would have given the governor an opportunity to get a range of perspectives before signing the letter.

“How that would have borne on her final decision I don’t know. I wouldn’t speculate.”

Asked if Breman made the wrong decision in supporting Powell, Willis said she wouldn’t speculate but “it would have been appropriate as the Minister of Foreign Affairs has said, for her take advice from across government”.

Willis said Breman should have let her know that she intended to sign the letter and had she done that, Willis would have advised her to take advice from the Foreign Affairs Ministry and speak with the Treasury Secretary about.

“She’s new in the job. I think she was being overly respectful of my private time.”

Asked if she agreed with the support, Willis deferred to Peters.

“…it’s appropriate that on issues of foreign affairs that she get advice from the officials who are experts in that area.”

Luxon, who was addressing media with Willis after his State of the Nation speech in Auckland on Monday, said they would only be speculating as to what decision Breman might have ended up taking had she sought that advice.

“What’s very important here is, as a government we don’t comment on the internal domestic affairs of other countries. That’s entirely appropriate. We don’t appreciate it when others do it to our own country.

“But as an independent Reserve Bank governor, we respect the independence of our Reserve Bank. It plays a critical role being independent on monetary policy in our own democracy. And we’ve got to respect her independence.”

Asked if Breman had apologised, Willis confirmed she didn’t.

“I didn’t think an apology was necessary. What is important is that in future she takes that learning of making sure she seeks advice and lets people know ahead of any international statements.”

Labour leader Chris Hipkins said he didn’t have a problem with the letter of support signed by Anna Breman. Samuel Rillstone

In a statement to RNZ last week the Reserve Bank said Breman had signed the statement because she and the RBNZ believed strongly in the independence of central banks.

“Dr Breman’s signature on the statement indicates the support of the Reserve Bank of New Zealand, which is statutorily independent from the New Zealand Government.”

Labour leader Chris Hipkins said he had no problem with the letter.

“I think it reflects the position that the New Zealand Government should be taking. The indepdendence of the (US) Federal Reserve and the threats against it are very concerning.”

Hipkins told media Peters was correct to say the Reserve Bank’s independence did not extend to foreign policy.

“Having said that, I think the Reserve Bank governor is entitled to express her view on international developments.”

He said the government could have been more visible on international developments such as the US attack on Venezuela, and its threats to take Greenland.

“I think the New Zealand government could have been more visible and more principled on all of those issues. Standing up for international laws, international rules, is something New Zealand has taken very principled positions on in the past and we should continue to do so.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Watch: ‘Management speak mumbo jumbo’: Hipkins responds to Luxon’s State of the Nation address

Source: Radio New Zealand

Labour leader Chris Hipkins has called the Prime Minister’s State of the Nation address a “whole lot of management speak mumbo jumbo”.

Christopher Luxon has delivered his first speech of the year, to the Auckland Business Chamber.

Luxon launched a defence of his government’s progress and reform programme, and promised there would be no deviation from its plan should it win a second term.

The Labour leader responds to Luxon’s State of the Nation speech. RNZ / Samuel Rillstone

He said National would continue with its savings programme at this year’s Budget, and that there would be no “extravagant” election promises from National this election, saying any party that wanted to increase spending would need to increase borrowing or taxes.

Hipkins said Luxon’s adddress had shown he had no vision and no plan for New Zealand’s future.

“We need a vision. We need a plan for the future and it’s clear only Labour can deliver that.”

In terms of Labour’s plans for the upcoming election, Hipkins said the party had plenty to talk about and would do so.

“Luxon should focus on delivering on the political promises that he made,” Hipkins said, which he said included fixing the housing crisis and making healthcare more accessible.

“Things are getting harder for Kiwis not better.”

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Watch live: Labour’s Chris Hipkins responds to Luxon’s State of the Nation address

Source: Radio New Zealand

Labour leader Chris Hipkins is responding to the Prime Minister’s State of the Nation address.

Christopher Luxon has delivered his first speech of the year, to the Auckland Business Chamber.

Luxon launched a defence of his government’s progress and reform programme, and promised there would be no deviation from its plan should it win a second term.

The Labour leader responds to Luxon’s State of the Nation speech. RNZ / Samuel Rillstone

He said National would continue with its savings programme at this year’s Budget, and that there would be no “extravagant” election promises from National this election, saying any party that wanted to increase spending would need to increase borrowing or taxes.

Hipkins is expected to speak at about 3pm.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

ANZ’s new floating interest rate means an extra $12m in profit – expert

Source: Radio New Zealand

By lifting it’s floating mortgage interest rate 10 basis points ANZ will make an extra $12 million in profit, one expert says. AFP

The head of one of New Zealand’s biggest mortgage broking firms has taken aim at the country’s biggest bank for its latest interest rate increase.

ANZ last week lifted its floating home loan rate by 0.1 percent.

That takes it to 5.79 percent.

Squirrel chief executive David Cunningham said the lift would mean an extra $12 million in profit for the bank each year.

He said the rate had previously been in a “no man’s land” between Kiwibank and the other major lenders – not the cheapest on offer, but not the most expensive either.

“Why have your floating rate lower than the bulk of your competitors? Just quietly put it up and go ‘we may as well just take a bit more profit’. It’s as simple as that.”

Cunningham said all other major influences on home loan rates had remained the same since ANZ last changed its floating home loan rate on 26 November, so it seemed that market conditions were the sole driver of the move.

He said it would also help to fund the bank’s 1.5 percent cashback offer for new home loan customers, which had been extremely popular. One Squirrel customer had received more than $30,000.

“For mortgage brokers it was sort of a gold rush, almost everyone that had the opportunity took it … even as mortgage advisers, where we see a lot happening, we were pretty gobsmacked when we saw ANZ come out with that.”

He said banks were now competing with cash back rather than better interest rates, which meant those who did not move missed out.

Customers should “play the game” when they could and move banks to earn cash back when it was available, he said.

A spokesperson for ANZ said it was committed to offering competitive home loan rates.

“Since the OCR began to fall in August 2024, we’ve lowered our floating rate by 2.95 percent, more than any of the other main banks.

“On Tuesday we announced a small change to our floating and flexi rates to align with market conditions.

“Ahead of the November OCR cut, our floating rate was already below most of the main banks, our new rate remains competitively positioned among the main banks in the market today.

“We’ll continue to review rates as global and local conditions evolve.”

Cunningham said the New Zealand banking system was hard to break into because the existing banks could adjust prices across their range to alter what profit they made.

“You’ve always got a bunch of products you can compete to protect your margin.

“Whereas if you’re a mono-line provider and the competition turns to fixed rate loans and you haven’t got a floating rate loan to subsidise it or a credit card or a personal loan at a high margin or cheap deposits to subsidise it… that’s why the system is so resilient against attackers.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Weather: Another week of rain as second weather system looms

Source: Radio New Zealand

A band of rain moves across the country on Thursday. Earth Science NZ

New Zealand is in for another week of rain as a new weather system is forecast to move across the country.

The top of the North Island has been hit by heavy rain, causing flooding and slips. But forecasters say there is no reprieve from the rain this week.

MetService said a strong and humid easterly flow, the same set up from this weekend, is forecast to bring heavy rain to northern areas of the North Island on Monday evening and Tuesday, with severe thunderstorms and localised downpours possible.

The weather forecasting agency has issued heavy rain watches for Northland, Auckland and the Coromandel Peninsula for Monday and Tuesday.

However, the rain isn’t likely to stop there. MetService said there would be more watches and warnings issued for the next weather system later this week.

“[On Wednesday] a low of tropical origin, moving southeast, is expected to be approaching the North Island, bringing heavy rain and strong east to northeast wind,” it said.

MetService meteorologist Braydon White told RNZ there is still a lot of uncertainty with this weather system, but forecasters hope to get a clearer picture of its effects in the coming days.

“What we do know is that it’s going to bring rain for pretty much the whole country on Wednesday and through to Thursday,” White said.

MetService modelling shows there is a moderate confidence warning amounts of rainfall will fall about Northland, Auckland, Coromandel Peninsula and northwest Tasman. While from Buller to northern Fiordland, there is low confidence a rainfall warning would be needed.

The weather system is expected to have mostly crossed the country by the end of Thursday, bringing a break from the rain until later on Friday, White said.

Then, even more rain is forecast for later on Friday and Saturday for much of the country, as showers and cooler southerlies spread across the motu.

Civil Defence Northland said it was actively preparing for further heavy rain this week.

It said planning and coordination meetings with councils and key stakeholders took place on Monday morning to ensure officials are ready to respond if needed.

With weather conditions expected to remain changeable, Civil Defence encourages residents across Northland to take steps over the coming days to ensure they are prepared.

How to prepare:

  • Secure outdoor furniture and loose items
  • Clear drains and gutters
  • Move valuables and vehicles away from flood‑prone areas
  • Relocate stock from low‑lying land and bring pets indoors
  • Ensure you have food, water, medications, torches, and charged devices
  • Have a grab bag and evacuation plan ready.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Tararua district caught between anniversary days

Source: Radio New Zealand

The Tararua District is located between three regions, Manawatū-Whanganui, Hawke’s Bay and Wellington. Google Maps

Tararua’s mayor says many in his district observe anniversary days celebrating areas north and south of it, but they don’t get an extra stat day.

The area includes the town of Dannevirke and borders Wairarapa and Hawke’s Bay.

Officially its anniversary day was Monday — which was Wellington’s and encompassed the whole lower North Island.

But, due to its vicinity, Tararua Mayor Scott Gilmore told RNZ it was common for people to take Hawke’s Bay’s day too in October as annual leave.

“There is really close family connections, historical ties.”

Gilmore said often on those days there were events people liked to go to and they were prepared to take the day off for.

He said Tararua was unique because it was in an area which bordered three other regions – Manawatū, Hawke’s Bay and Wairarapa.

“We do have lots and lots of connections with other regions.”

The mayor noted the region did not officially get two stat holidays.

“If only that was the case, I’m sure people would be delighted but for the entire Tararua District Wellington Anniversary is our official day off.”

Gilmore said it would be great for Tararua to have its own day which reflected the district.

“The anniversary days are a real historic carry over from very, very, very old provincial government.

“You know, whether we have a direct connection with Wellington is probably not true.”

He said the area having its own day could make the public holidays more meaningful.

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New Zealand firefighters sent to help fight Australia’s bush fires

Source: Radio New Zealand

A bushfire burning near the town of Longwood, northern Victoria. AFP / CFA Wandong Fire Brigade / Kylie Shingles

Fire and Emergency New Zealand (FENZ) has sent 22 firefighters to Victoria, Australia to help fight the catastrophic bushfires.

They departed on Monday morning and will return to New Zealand on 2 February.

Victoria is experiencing extreme weather conditions with multiple bushfires, which have killed one person and caused extensive damage to homes, property and the environment.

Emergency Management Victoria formally requested help from FENZ last week.

FENZ said the contingent being sent consists of 20 firefighters experienced in arduous conditions, and two liaison officers.

One of the crews is from the Department of Conservation, one is from the forestry industry and the other two crews comprise volunteer firefighters from FENZ brigades around the country.

Assistant National Commander Ken Cooper said the firefighters’ tasks would be confirmed when they reach Melbourne, but they are equipped and ready to stay at a fire camp in a remote location.

Fire and Emergency has international agreements to provide mutual assistance, and regularly deploys personnel overseas to Australia, Pacific Islands and North America.

“We assess each request to ensure that we have the capacity to send appropriate personnel without compromising our ability to maintain full capability to respond to incidents at home,” Cooper said.

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Sheep die after truck crash in Wairoa

Source: Radio New Zealand

Police attended the single vehicle crash where several sheep died. RNZ / Cole Eastham-Farrelly

Sheer have died after a truck with a number of livestock on board overturned.

The incident has closed State Highway 2, between Cricklewood Road and Kiwi Valley Road, in Wairoa.

Police were called to the single-vehicle crash around 10.40am on Monday.

They confirmed an unknown number of sheep had died, but the driver was uninjured.

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Prime Minister Christopher Luxon delivers State of the Nation speech

Source: Radio New Zealand

The prime minister says there will be no “extravagant” election promises from National, and confirms his government will continue to run a tight budget, in his first speech of the election year.

In a State of the Nation address at Auckland’s new International Convention Centre, Christopher Luxon launched a defence of his government’s progress and reform programme, and promised there would be no deviation from its plan should it win a second term.

National has been running on a slogan of ‘fixing the basics, building the future,’ but much of the speech was about the first part.

“For two years, National has been fixing the basics. Now heading into the election this year, National will campaign on a bold plan to build the future and leave a legacy of prosperity and opportunity for future generations,” he said.

Despite rising unemployment, a deficit higher than originally forecast, and a return to surplus pushed out to 2029-30, Luxon pointed to falling inflation and interest rates, as well as increased business confidence, as signs of the government’s progress.

“I have to tell you, I feel more confident than ever that the recovery has now arrived and Kiwis can look forward to a year which is brighter than the last few,” Luxon said.

RNZ / Calvin Samuel

Luxon used his State of the Nation speech last year to proclaim 2025 would be the year the country would “go for growth”.

At this year’s event hosted by the Auckland Business Chamber, Luxon told his audience he understood their frustration the recovery had taken so long to get traction.

“I remain of the view that we got the balance right,” he said.

“There were calls at the time for a big fiscal stimulus and to open the immigration gates and pump up house prices. As I spoke about last year, we can’t risk repeating the sugar-rush economics of the past.”

Luxon said Finance Minister Nicola Willis had delivered savings of around $11 billion a year, and promised this year’s Budget would be more of the same.

“New Zealand simply has to get its finances in order if it is to achieve a long-term improvement in its economic prospects. That’s why there will be more savings in this year’s Budget and no room for extravagant election promises,” he said.

“Let’s be straight up with each other. Any party that wants to ramp up spending is being economically irresponsible. Because the only way to spend more money is to borrow it or to raise taxes.”

He said New Zealand “can’t afford to be complacent” amidst global volatility.

RNZ / Calvin Samuel

Pointing to a rupturing of the rules-based system, and a shift from economic to security, Luxon said there was a “rising risk” of a “dangerous miscalculation” in the Indo-Pacific, Luxon said the government’s investment in defence was justified, as was its pursuit of Free Trade deals.

“We have what the world wants, we’re a reliable partner, we have the values to which most of the world aspire, and we’re an increasingly confident nation with ambition. That’s ultimately good for our economy and our country’s future,” he said.

“But a more volatile and uncertain world underscores the importance of controlling what we can. The more we are building our economy at home and developing and diversifying those relationships abroad, the stronger New Zealand gets.”

Luxon also trumpeted the Coalition’s progress on education, but signalled the scrapping of NCEA would take longer to implement than originally thought.

Public consultation ended in September, and Cabinet was supposed to consider a final set of proposals in November.

But Luxon indicated there would be a delay.

“While Erica [Stanford] is working around the clock to make these changes a reality, they won’t be bedded in for some time. The first cohort to sit the new qualifications are only starting high school in the coming weeks. These are big changes that are critical to our plan to build the future,” he said.

Law and order is the only category in the top five of the Ipsos Issues Monitor that the public believes National can handle better than Labour.

The move from annual to quarterly crime data releases has led to accusations of inaccuracies.

But Luxon said policies like the return of Three Strikes and the gang patch ban had led to “exceptional” results.

As it was a National Party event, Luxon did not mention his coalition partners ACT or New Zealand First.

But, in speaking about the Resource Management Act reforms, Luxon said he wanted National ministers in charge.

RMA reform minister Chris Bishop has been assisted by ACT parliamentary under-secretary Simon Court in drafting the reforms, while ministers like Andrew Hoggard and Shane Jones also have ministerial responsibility for certain aspects of the legislation.

“I’ll be blunt. I want, and you should want, National ministers writing those rules, so we have a resource management regime which allows New Zealanders to build the future,” Luxon said.

“And the only way to build that future is with a National government.”

Luxon also did not address any of the opposition parties by name. Labour leader Chris Hipkins is expected to speak in response to the speech later on Monday afternoon.

There were also no policy announcements during the speech, though Luxon repeated National’s pledge to raise the default KiwiSaver contribution rate if re-elected.

It is understood Cabinet has settled on a position regarding homeless ‘move-on’ orders in Auckland, but Luxon did not reveal more during his speech. Clarification around a potential weakening of housing intensification laws was also not mentioned.

Later this week, National MPs will gather in Christchurch for their first caucus meeting of the year, where it is expected Luxon will announce the date of the election.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

‘Huge amount of luck’ led to discover of tramper missing since last year

Source: Radio New Zealand

Graham Garnett. Supplied / NZ Police

Two people who stumbled upon a tramper missing for almost three weeks in the upper South Island were in the right place at the right time.

Graham Garnett, 66, was found by sheltering in a hut in Kahurangi National Park by a helicopter pilot and council staff member on Sunday afternoon, 19 days after he was reported overdue.

Heliventures NZ chief executive Nicki McMillan said on Monday a pilot and a West Coast Regional Council staff member found Garnett while they were installing signs at Venus Hut ahead of a pest control operation.

Venus Hut.

“We are thrilled with the great news and while being immensely proud of our staff, there was a huge amount of luck involved. We were in the right place at the right time and are extremely happy and relieved for Graham and his family and friends, who have undoubtedly been through an extremely difficult time over the past few weeks.”

A West Coast Regional Council environmental sciences group manager Shanti Morgan said two staff members were involved in the rescue of the missing tramper from Venus Hut on Sunday along with helicopter staff and others.

She said the council was very proud of the staff members and their role in the rescue.

Police said Garnett had been through “quite an ordeal” during his weeks in the bush.

“Graham has been transported to Nelson Hospital, where he has been re-united with his family,” Police Search and Rescue sergeant Jonny Evans said on Sunday.

Garnett had failed to return home from a hike in the national park on 30 December.

“This is an amazing result,” Evans said. “We are so pleased for Graham and his loved ones.

“Obviously, he has been through quite an ordeal and everyone involved in the search is delighted to hear that Graham has been found alive.”

Police search and rescue said they would suspend their extensive search for Garnett last week.

Four specialist canyon teams, as well as a Defence Force NH90 helicopter, were involved in the search.

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