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


Reserve Bank urged to amend interest rate forecast

Media Release Friday, June 14th, 2002

Reserve Bank urged to amend interest rate forecast

The Reserve Bank should urgently amend its forecasts for the economy from last month, the Employers & Manufacturers Association (Northern) says.

"The Bank's forecast assumed only a 'gradual appreciation of the New Zealand dollar' but it's gone up 16 per cent in the last few weeks, said Alasdair Thompson, EMA's chief executive.

"Acting Reserve Bank Governor Rod Carr's prediction that official interest rates would rise to seven per cent by early next year was the trigger for the dollar to shoot up.

"Fast moving money from the US flooded in to take advantage of our 90 day bill rates over 5.5 per cent in a one way bet the exchange rate would rise to doubly reward the speculation. We said this in our statement on May 21st.

"The Reserve Bank's position is now stalling economic growth. Smaller exporters are experiencing far lower returns than expected. New investment is going on hold.

"The drop in food prices today is a further confirmation the Bank got it wrong.

"The Bank should issue a revised statement urgently noting the lack of inflationary pressure, the fall in commodity prices and that the economy is already off the boil."

Comments: Alasdair Thompson tel 09 367 0911 (b)

09 303 3951 (h)

0274 982 024

© 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>>