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


Rates rise will hurt investment: EMA

Today's interest rate rise of 0.25 per cent is entirely predictable given the Reserve Bank's record and the cost impact of government policies on new investment and sustainable growth, the Employers & Manufacturers Association (Northern) says.

"The Reserve Bank operates from an unnecessarily high interest rate plateau," said Alasdair Thompson, EMA's chief executive.

"Its single objective to control inflation could be achieved from a generally lower monetary policy threshold overall.

"In taking its ultra cautious path for the past 10 years, the Bank has found the move down to more investment friendly interest levels too difficult.

"The Banks' conservatism has been underpinned by extra central and local government taxes and compliance costs hitting business, particularly for fuel, electricity, OH&S, hazardous substances and the RMA.

"These factors are contributing to a complacency that the economy is performing better than is justified.

"We share the Bank's deep concern about the inadequacy of investment formation to grow our economic capacity without inflation.

"It is critical now that government policy focuses primarily on achieving growth."

© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>