The fiscally laxative Reserve Bank

The NZ Herald reports:

According to a Cabinet paper released by Willis, the bank’s operational spending shot up from $158m in 2023/24 to $200m in 2024/25 – an astonishing increase of $42m, a sum of money that as recently as 2019 would have equated to more than 80% of the bank’s entire annual funding.

NZ has huge budget deficits. The entire public sector is trying to reduce costs and staff counts. But the Reserve Bank was so arrogant that it thought increasing spending by over 25% was fine. And then apparently the Governor had a hissy fit and resigned when the Government wouldn’t grant him even more money.

I have managed to find the one (other) person in New Zealand that thinks the Reserve Bank should get a 25% funding increase while the rest of NZ is paying off government debt. It’s the PSA’s Fleur Fitzsimons:

At a time of turmoil in the international economic landscape, it doesn’t make sense to kneecap one of the key agencies dedicated to helping New Zealand meet its challenges.

Kneecap. How hilarious. The Reserve Bank will still have a level of funding two and a half times greater than a decade ago. But Fleur thinks anything less than $1 billion is kneecapping.