Reserve Bank Should Continue Downward Trend

New Zealand First leader Winston Peters has welcomed the reduction in the Official Cash Rate to 5.25 percent but has urged the Reserve Bank to continue the downwards trend in interest rates.

“As business confidence continues to fall and our domestic economy survives on the artificial outcomes of higher immigration, the Governor needs to drop the rate further and, in the short term, at least match Australia’s 4.75 percent.

“The conservative path of following others has artificially denied liquidity and propped up interest rates at a cost of hundreds of millions of dollars.

“New Zealand’s continued reliance on immigration to fuel internal consumption rather than developing a meaningful plan for expanding exports requires braver monetary policy decisions. This is a small step in the right direction,” Mr. Peters said.

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