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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news