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

 

Careful management of inflationary pressures needed

13 March 2014

Careful management of inflationary pressures needed

Prudent advance signalling will have led to today’s OCR change being factored in by markets, easing concerns of a strengthened dollar, says BusinessNZ.

Chief Executive Phil O’Reilly says changes in interest rates need to take into account the unique situations facing markets since the global financial crisis, including the fact that globally and in New Zealand, interest rates are at historic low levels.

“The lessons of the past suggest that if we don’t start early enough, we may have to tighten more later.

“Given that monetary policy is focused on inflation one or two years down the track, it will be important that the Reserve Bank monitors activity carefully, taking account of factors driving inflationary pressures.

“Government can support the Reserve Banks policy through controlling spending, sound regulatory policy and promoting competitive markets,” Mr O’Reilly said.

“A key concern is to ensure that land supply is not artificially constrained, which could cause further inflation in the housing market.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: