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

 

Cut Interest Before Power Costs Impacts Economy

Cut Interest Rates Before Electricity Costs Impact On Economy

Interest rates should take into account the prospect of price rises caused by the electricity crisis says Business New Zealand Chief Executive Simon Carlaw.

"The Reserve Bank should take the opportunity to cut the official cash rate this week," Mr Carlaw said.

"Global markets remain uncertain, as shown by our faltering export performance in manufactured goods. The domestic economy is still fragile and the level of investment in future capacity is still a concern. Domestic inflation is not a significant issue.

"Action now would offset problems ahead. Drought will have a double banger effect on the economy - commodity returns will be checked, and electricity price increases on business and industry will inevitably be passed on. The impact needs to be taken into account now, not when it hits consumers.

"The Reserve Bank should be well aware of the effects of shutting the stable door after the horse has bolted."

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Space: They Landed Robots On An Asteroid

On September 21, the small compact MINERVA-II1 rovers separated from the Hayabusa2 spacecraft... both rovers landed on the surface of asteroid Ryugu. The two rovers are in good condition and are transmitting images and data. More>>

RNZ: Court Of Appeal Rejects NZME-Stuff Merger

The Court of Appeal has turned down the proposed merger between media companies NZME and Stuff... The Commerce Commission had turned down the merger because of concerns about concentrating too much commercial and editorial power in one organisation. More>>

ALSO:

Cut Before Using: Australian Strawberries Withdrawn

Needles were found in a punnet of strawberries sourced from Western Australia, which was bought in a Countdown supermarket in Auckland. The Choice brand of strawberries was sold nationwide last week. More>>

ALSO:

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark… More>>

ALSO: