Story: Reserve Bank

Borrowers and savers (2nd of 2)

Borrowers and savers

This cartoon explores how changes made to the official cash rate by the Reserve Bank affect borrowers and savers differently. In late January 2009 Reserve Bank Governor Alan Bollard (holding the whip) cut the official cash rate to 3.5%, which was the lowest it had been since it was first introduced in 1999. This was good for borrowers, but not for savers because it led to a drop in interest rates. The overworked savers are being assured that their financial pain will benefit the wider economy.

Using this item

Alexander Turnbull Library
Reference: DCDL-0010255
Cartoon by Mike Moreu

Permission of the Alexander Turnbull Library, National Library of New Zealand, Te Puna Mātauranga o Aotearoa, must be obtained before any re-use of this image.

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How to cite this page:

John Singleton, 'Reserve Bank - Independence and supervision', Te Ara - the Encyclopedia of New Zealand, http://www.TeAra.govt.nz/en/cartoon/33466/borrowers-and-savers (accessed 26 August 2019)

Story by John Singleton, published 20 Jun 2012