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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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