Reserve Bank Should Cut Ocr Says Peters

New Zealand First says the Reserve Bank should have reduced interest rates and eased the pressure on the dollar to help exporters.

Rt Hon Winston Peters said today that the country faced uncertain economic times and the Government was relying on large-scale immigration and consumer spending to maintain economic activity.

“This, of course, is no way to run an economy that is reliant on exports and more should be done to keep the New Zealand dollar at a level that helps exporters.

“Our benchmark interest rate of 5.75 percent is high in world terms and it is forcing the New Zealand dollar up to a level that is hurting us on world markets.

“The higher dollar simply makes imports cheaper and impedes the sustainable growth of the New Zealand economy,” said Mr Peters.

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