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

 


Active Central Banks

Active Central Banks – 8 May
The Reserve Bank of New Zealand (RBNZ) has admitted to intervening in currency markets responding to the appreciation of our currency, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “It is good to see the RBNZ make some moves to lower our currency, but they can do much more than “take the top off the rallies”. The sharp drop in the currency across the board shows just what action from a central bank can do. If the RBNZ were to commit to a more long term set of actions to bring down the currency, we would see a sustained effect on the dollar. This could be achieved through a co-ordinated mix of currency intervention, monetary policy and other macro-prudential tools.”

“We consistently reference the example for the Swiss Central Bank using the infinite capacity of a central bank to place and enforce a currency ceiling.”

“The Reserve Bank of Australia (RBA) has also cut a further 25 basis points off its cash rate to a record low 2.75%. They are taking action against the appreciation of their currency.”

“Much of Australia’s recent economic success has been built on the back of their strong natural resource based businesses. Now their exporting sector is struggling, largely due to strength of their currency.”

“Why is this important for New Zealand? Australia has been a bright spot for exporters in recent times; meaning businesses exporting to Australia for Australian consumption have been doing okay, compared to those selling into the U.S and Europe. The RBA takes action to lower the pressure on the AUS$ and places upwards pressure on the NZ$; this will hurt New Zealand exporters.”

“We are pleased to see the Reserve Bank of New Zealand (RBNZ) commit to putting new tools into place for increasing reserves for high Loan to Value Ratio loans as well as some currency intervention.”

“Even so, our dollar remains significantly overvalued, hurting exporters.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news