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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news