Scoop has an Ethical Paywall
Reserve Bank decision appropriate
5 December 2008
Reserve Bank decision
appropriate
The Reserve Bank's decision to drop the OCR 1.5 basis points was appropriate in light of recent events says Business NZ Chief Executive Phil O'Reilly.
"International inflation has dropped because of the drop in global demand, especially for oil and commodities including dairy.
"However there are still concerns over inflationary pressures in the non-tradable sector.
"While encouraging economic activity with lower interest rates, it will also be important to keep a rein on spending blowouts in local government and in areas of central government monopoly control such as ACC.
"Moreover producer input prices are still high - up 3.7% for the September 2008 quarter - and the Labour Cost Index is still recording record growth.
"There is still great need to ensure the economy is as competitive as possible."
ENDS
John Mazenier: Gaffer Tape And Glue Delivering New Zealand’s Mission Critical Services
Earthquake Commission: Ivan Skinner Award Winner Inspired By Real-life Earthquake Experience
Reserve Bank: Consultation Opens On A Digital Currency For New Zealand
NIWA: Ship Anchors May Cause Extensive And Long-lasting Damage To The Seafloor, According To New Research
New Zealand Customs Service: A Step Forward For Simpler Trade Between New Zealand And Singapore
Horizon Research: 68% Say Make Banks Offer Fraud Protection
