Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Growth and inflation - get the recipe right


Growth and inflation - get the recipe right

Business NZ endorses comments by the Auckland Regional Chamber of Commerce questioning anti-growth messages by bank economists.

Business NZ Chief Executive Simon Carlaw says it's curious for banks to be bagging growth when two of their major products - credit cards and mortgages - are part of the lubricants making it easy for consumers to borrow larger and larger sums of money, contributing to inflationary pressures.

"That doesn't mean the Reserve Bank is necessarily at fault - after all, monetary policy is only one part of the equation. The Reserve Bank is looking after its patch while other parts of the economy need as much if not more attention - overspending by central and local government, unnecessarily high tax, too-rigid employment law, skills shortages and inadequate infrastructure - these are all indicators that the recipe isn't right yet.

"Business is focused on driving higher growth - the living standards of all of us depend on it. It's as simple as that. It's up to Government to get the policy environment right so that growth doesn't tip us towards inflation," Mr Carlaw said.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.