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


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news