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

 


Can we manage inflation without choking growth?

Can we manage inflation without choking growth?

Talk of the Reserve Bank raising the Official Cash Rate (OCR) to keep inflation under control needs to be balanced against the importance of ensuring that we also lock in to the economy a steady sustainable pace of growth, says Michael Barnett, head of the Auckland Chamber of Commerce.

“It hasn’t been that long ago that a downward spiral in business confidence bottomed out as a result of the global financial crises – GFC.

“With businesses starting to improve their balance sheets, employ more staff and take advantage of opportunities in the Christchurch earthquake recovery and Auckland housing expansion, the last thing the economy needs is for a rise in interest rates to begin a trend that chokes off our recent growth success,” said Mr Barnett.

It has happened in the past – it seems that every time we ‘recover’ and get growth up around 3% the Reserve Bank steps in and stifles that success and blames the very growth we want for adding to inflation.

“It affects the SME’s in particular.

“I would like to believe that in this growth-led cycle the Reserve Bank will be putting up interest rates slower than in the past, and doing so in a way that balances the need to control inflation with the equal need to maintain a steady sustainable pace of growth - and with it a high level of business confidence.”

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news