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

 

Reserve Bank Actions Puzzle Manufacturers

19 January 2000

Reserve Bank Actions Puzzle Manufacturers

“Manufacturers are puzzled by the Reserve Bank’s decision to increase the OCR by 0.25% given the widespread uncertainty in the sector over the robustness of economic growth during the next twelve or so months”, said Simon Carlaw, Chief Executive of the New Zealand Manufacturers Federation. Mr Carlaw was commenting on the Reserve Bank’s announcement today to increase the OCR.

“While manufacturers have recorded good growth in the December quarter, there are indications that they doubt this growth is sustainable. Concerns certainly include proposed changes to ACC and the ECA and the impact of other proposals the Government is currently considering which would affect the business environment.

“The most significant pointer is the poor rate of investment by manufacturers. They are simply not prepared to take the risk without greater certainty. Without this investment the rate of growth is unlikely to continue at present levels.

“Not only does the Reserve Bank appear to have down-played this uncertainty in its prognostications, it also seems to have down-played the continued strong growth in imports and the blow-out in the balance of payments. Any rise in the exchange rate as a result of the rise in interest rates would certainly dent the current fragile recovery in the productive sector.

“For these reasons the Reserve Bank appears to have been premature in its announcement today, particularly as it has an horizon of two years. It may have been wiser to have waited for the CPI figures which came out only hours later and the business opinion data due out next week.”

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO:

Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>

ALSO: