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

 

Reserve Bank - Economy On A Treadmill!!


19 April 2000

Media Release
RESERVE BANK - ECONOMY ON A TREADMILL!!


Today's Reserve Bank decision to force up interest rates still further will do nothing for growth and business confidence, said Michael Barnett, Chief Executive of the Auckland Chamber of Commerce.

"It is becoming a bad habit," he said. "Each time the Reserve Bank forces up interest rates, the cost of business rises, and prices are forced up a notch which marginally fuels inflation and in turn forces the Reserve Bank to force up interest rates a further notch...."

Making matters worse in this month's intervention by the Reserve Bank is that most of the so-called inflation bubble is imported - the rise in the price of petrol - or seasonal; eg, high tomato prices have been cited.

It is stupid to lock in high interest rates on such factors. Firstly, the price of petrol is now coming down! So why doesn't the Reserve Bank take this into account?

Mr Barnett reminded politicians and Reserve Bank Governor Dr Brash that the Bank's actions today will simply punish ordinary punters - and small-medium business trying to make a go of things! And for what reason?

The best that they can say is to keep inflation in check!! But it is already in check. Even with the latest CPI nudge of 0.7%, the annual rate taking account of the last four quarters is just 1.5% - that is just halfway towards the Reserve Bank’s threshold of 3%.

The Reserve Bank's job is to keep inflation below 3% - not to keep it below 1.5%.


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

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: