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

 

Time For Interest Rates To Fall

MEDIA RELEASE

19 November 2002


Time For Interest Rates To Fall

“The combined effect of a range of factors means that it is now time for the official cash rate to fall,” said Council of Trade Unions economist Peter Conway today.

“The economic outlook for next year is being influenced by a continuing slide in global economic conditions with widening deflationary pressures, falling NZ commodity prices, a rising NZ to US dollar exchange rate, and the prospect of a drought,” he said.

“These factors put together mean that it is unwise to have the official cash rate sitting at 5.75%, which is much higher than our trading partners. “

Peter Conway said that while there were some domestic pressures on prices, they were still unlikely to threaten the top of the inflation band.

“While it will not be surprising if the Reserve Bank Governor keeps the cash rate on hold tomorrow, we will be looking for signs of a cut in the near future,” he said.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: