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

 

CPI result enables a desirable rates cut


CPI result enables a desirable rates cut

Today's CPI results and the inflation outlook enable an interest rate cut with the prospect of positive impacts for the tradeables sector and exporters in particular, says Business NZ.

Chief Executive Simon Carlaw says the unexpected drop in inflation to 1.5% for the year ending June provides strong evidence of the impact of the high dollar both on big-ticket imports such as fuel and vehicles and on the critical export sector, which is very patchy.

"The economy is showing clear signs of weakness. GDP growth for the June quarter may be struggling to register. Only residual residential construction shows much sign of life and it must be questioned how long that can hold up given a slowing in migration numbers.

"There is therefore a strong case for the Reserve Bank to reduce the cash rate by 50 basis points next week, which would also take some of the steam out of funds flowing into globally high interest rates here," Mr Carlaw said.


© 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>>

Elsewhere:


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>>

ALSO:


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>>

ALSO:

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>>