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

 


Wait and see on the OCR - NZMEA

Wait and see on the OCR - 24 January

Although this week's inflation numbers were slightly above expectations, it is still too early for the Reserve Bank of New Zealand to increase the OCR without yet more collateral damage to the manufacturing and exporting sector, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “While domestically we are seeing some positives, our value added exporters and import competing manufacturers are still confronting volume and margin challenges.”

“Increasing our OCR, in stark contrast to the rest of the world, would be making a choice to further elevate our currency from levels that are already too high.   It is better to deal directly with the property problem and the underlying threat to financial stability.”

“A rising bias to our OCR would put us out of step with most other economies, world markets remain fragile and most countries are still holding or even relaxing their own monetary policy.”

“The recently reported price increases are not widespread throughout the economy and at this point the full effectiveness of the LVR restrictions are not yet clear.”

“There is still time and space to wait and see what the world brings and likely hold off any increases in the OCR for much of 2014.”

“Our NZMEA Survey of Business Conditions showed total turnover for November increasing by 10.53%, with domestic turnover decreasing 3.95%, and export turnover improving 24.86%."
"This is a change from the trends throughout 2013, which saw domestic activity generally improving, while exports experienced a more downward trend.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news