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


Interest costs on top of price rises not necessary

Media release September 28, 2000

Higher mortgage costs on top of price rises not necessary

None of us need be hit by higher interest rates as a result of higher grocery and other prices coming on top of the high petrol and transport costs if we hold back our expectations of higher incomes, says the Employers & Manufacturers Association (Northern).

"Because the New Zealand dollar has fallen further than other currencies against the US dollar, all New Zealanders are poorer than a few months ago, " said Alasdair Thompson, EMA's chief executive.

"Our dollar simply buys less from overseas than it used to.

"The competitive marketplace in New Zealand meant until recently that the higher costs of imports and higher oil prices had mostly been absorbed by New Zealand business.

"Now all of us are facing increased costs.

"But the Reserve Bank has clearly said it will not put up interest rates to counteract this inflation unless New Zealanders seek higher salaries, wages and dividends to compensate for them.

"If we do that Dr Brash will be obliged to raise interest rates, which will harm economic growth and job opportunities.

"MP's especially must not take salary increases even if the Higher Salaries Commission says they can.

"Business leaders too must set an example on this.

"Everyone of us has to accept as a nation we are poorer.

"We desperately need to see leadership on salary and wage restraint just now."

Further comment: Alasdair Thompson tel 09 367 0911 (bus) 09 303 3951(hme) 025 982 024

© Scoop Media

Business Headlines | Sci-Tech Headlines


Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>


GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>


Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>


Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>