Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Reserve Bank Moves - Not Justified?

Media Release
Auckland Chamber of Commerce

The action of the Reserve Bank to lift interest rates to avoid inflation pressures building is unconvincing....

"Combined with the uncertainty created by repeal of the Employment Contracts Act and re-nationalisation of Accident Compensation, businesses will want to respond cautiously to this latest change to ensure the cost of doing business is kept under control in coming months."

Michael Barnett, Chief Executive of the Auckland Chamber of Commerce, said that just when the economy starts to grow and hum, we continue to be the only OECD economy that persists in intervention to fuel another self-induced recession.

The warning from Reserve Bank Governor Dr Brash of further intervention to maintain low inflation is a message to politicians as much as the business market.

Impact of increased government spending arising from the upcoming Budget will obviously have potential to fuel inflation, and simply encourage the Reserve Bank to intervene further, with business and consumers picking up the cost!

"Surely, the global message is clear - that inflation is no longer the enemy, and all the Bank is doing is using an outdated blunt instrument that will increase the cost of money to business and send the wrong signal about the need for a growth-led economy," said Mr Barnett.

"What we need is action to break the cycle of holding the economy down as soon as growth shows its potential, and instead develop a strategy to build up a bigger economy, with a strong core of export-led enterprises leading the way. “

For more information contact: Michael Barnett, Ph: (09) 309-6100 or Mob: 021 631 150

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Corrections Corrected: Supreme Court Rules On Release Dates

Corrections has always followed the lawful rulings of the Court in its calculation of sentence release dates. On four previous occasions, the Court of Appeal had upheld Corrections’ practices in calculating pre-sentence detention. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news