Meanwhile, the cure for all this, low interest rates, comes with the side effect of pushing stored wealth into property and shares. It cuts interest rates dramatically and undertakes quantitative easing, its basically trying to inflate the economy," he said. "I think that there are a lot of issues around negative interest rates. It needs to be investment that will drive productivity and underpin more solid economic growth when the stimulus effect has passed. New Zealand has historically been ahead of the curve on economic policy, we should stay there.

Source: New Zealand Herald August 15, 2016 23:48 UTC