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

 


Governor Wheeler’s parliamentary debut ends with a whimper

RBNZ governor Wheeler’s parliamentary debut ends with a whimper

By Paul McBeth

Nov. 7 (BusinessDesk) - Reserve Bank head Graeme Wheeler's first appearance in front of a parliamentary select committee descended into farce when the room was cleared to let politicians argue for more time with the new governor.

Finance and expenditure committee chairman Todd McClay turfed everyone out, including governor Wheeler and his officials, when opposition MPs opposed his move to wrap up proceedings at 1pm in Wellington after starting 15 minutes late. Several minutes later, NZ First leader Winston Peters and Labour finance spokesman David Parker emerged saying the hearing was over and Wheeler headed back to his office.

Wheeler was making his first appearance in front of a Parliamentary committee as central bank governor having released the bank's six-monthly financial stability report earlier today.

Before being ejected, he told politicians that quantitative easing policy undertaken by central banks in the US, Japan and Europe were "a sign of desperation" and that New Zealand had scope to cut the benchmark interest rate if needed.

"If the issue is should we move to quantitative easing in New Zealand, we don't think that's something that deserves serious thought at this point," Wheeler said.

He quashed suggestions lowering the official cash rate would rein in the strength of the New Zealand dollar, saying the currency is more closely aligned with the nation's terms of trade over the long term than interest rate adjustments.

"It's hard at this point to see any factor that would lead to a major depreciation in the exchange rate in the short-term," he said. "There's no easy solution out there that simply says cut interest rates 25 pips and the exchange rates will come off 10 percent, that just doesn't work."

Wheeler backed the level of local bank profits, saying lenders' return on assets was about average among developed nations and low in terms of a return on equity. He didn't agree with the view that high bank profits are the price New Zealand pays for financial stability.

"The banking system here as we see it at this point is healthy, it's sound and it makes what we believe acceptable rates of return that aren't out of line with international comparisons," he said. "We see a lot of competitiveness and a lot of efficiency."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news