Winter, Mark, 1958-: [Downsizemic activity - interest rates fall] 11 March 2011
Text top left reads 'Downsizemic activity' and a seismic graph zigzags wildly but gradually tails off into the words 'Interest rates' which take a serious downwards trend. Context - The Christchurch earthquakes of 4 September 2010 and 22 February 2011 which have had an impact on an already stagnating economy. The Reserve Bank has made a relatively large 50-point cut in its benchmark interest rate, the Official Cash Rate (from 3% to 2.5 per cent). Critics say that inflation is already running unacceptably high and there is a threat of much higher inflation in a year or two when the rebuilding of Christchurch begins to put pressure on limited resources. The Reserve Bank acknowledged these factors, but it has chosen instead to focus on the immediate impact of the earthquake on the economy and particularly on all-important business and consumer sentiment. (Press editorial 12 March 2011) Quantity: 1 digital cartoon(s).