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

 


Cash rate rise will hurt exporters and cost jobs

MEDIA RELEASE

08 December 2005

Official cash rate rise will hurt exporters and cost jobs, says CTU

"Higher interests rates are pushing up the dollar, increasing the cost of investment and will affect jobs in the export sector," Council of Trade Unions Economist Peter Conway said today.

Reserve Bank governor Alan Bollard increased the Official Cash Rate (OCR) this morning by 25 points to 7.25 per cent.

"Hopefully this is the last increase in this cycle and the next move will be down," said Peter Conway. "As well as hurting first home buyers, a further increase in the OCR also affects low income workers already in the property market, who will now pay higher interest rates."

"We make the point again though, that business leaders suggesting the Government cut or slow spending to take pressure off inflation undermine their credibility when at the same time they are arguing for large tax cuts - which is itself inflationary," said Peter Conway.

"We also note that wage increases are not impacting on inflation to any significant extent, with the Labour Cost index showing wages increasing by 3% in the last year in comparison to house prices rises of around 17%," said Peter Conway.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

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>>

Earlier:

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>>

ALSO:

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>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news