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


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news