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

 


Fiscal discipline key to keeping interest rates low

Fiscal discipline key to keeping interest rates low


Federated Farmers today called on all political parties to commit to keep fiscal promises modest in this election year in order to keep interest rates low.

This follows the Reserve Bank increasing the OCR from 2.75 percent to 3.0 percent and indicating there is more to come.

“The Reserve Bank is right – the high exchange rate is causing ‘headwinds’ for the tradable sector but the Reserve Bank does not believe its current strength is sustainable,” says Bruce Wills, Federated Farmers’ National President.

“They go on to say that the economy remains strong and that inflationary pressures are building, especially in construction and other non-tradable sectors.

“The economy has been progressing and agriculture and the tradable sector have made a significant positive contribution to that. But rising interest and exchange rates will slow progress up.

“What the bank didn’t say, surprisingly, was that government expenditure needs to remain under control.

“All political parties, who are looking to the medium and long term success of the New Zealand economy and environment, need to commit to keep fiscal policy tight. Particularly in an election year, they need to ensure they don’t go on a spending spree that the country can’t afford.

“Loose fiscal policy simply leads to higher inflation, interest rates and exchange rates.

“What our exporters and the rest of New Zealand needs are politicians who have the discipline to keep government spending in check. All our political parties should commit to this,” Mr Wills concluded.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

March 2017: Commerce Commission Delays Decision On Fairfax-NZME

The Commerce Commission has delayed its decision on the proposed merger between NZME and Fairfax Media's New Zealand assets, saying the deal is complex and it needs more time to assess the impact on both news content and the advertising market. More>>

ALSO:

Plan Plan: Permanent Independent Hearings Panel Proposed For Planning

The Productivity Commission recommends creating a permanent independent hearings panel like the one that cut through local politics to settle Auckland’s Unitary Plan, for the whole country. More>>

ALSO:

Statistics: NZ Jobless Rate Falls To 5.1% Under New Methodology

New Zealand's unemployment rate fell more than expected in the second quarter as Statistics New Zealand adopted a new way of measuring the labour market to bring the country in line with international practices, and while a growing economy continued to support jobs growth. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news