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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news