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

 


Farmers call for OCR pause as exports fall in June quarter

Farmers call for OCR pause as exports fall in the June quarter


Following yesterday’s increase in the Official Cash Rate and export data for the June quarter, Federated Farmers is relieved the OCR will likely be on hold for the remainder of 2014.

“With the rural economy’s sentiment decidedly bearish, an OCR hold is perhaps the best we could hope for,” says Dr William Rolleston, Federated Farmers President.

“Dairy farmers are anxious about their likely payout following falls in international dairy prices and a stubbornly high exchange rate.

“This will not be helped by the seasonally adjusted value of exported goods falling 7.4 percent in the June quarter. Most of the major primary exports were down, including dairy, meat, logs

“Given the drop in farmer confidence and other economic developments, we actually thought there was good case for the OCR to be left unchanged.

“While that’s now academic, the key thing is that the Reserve Bank has clearly communicated its intention to pause and take stock. This is the right signal.

“We were pleased to hear the Reserve Bank state, in no uncertain terms, its concern about the unjustifiably and unsustainably high exchange rate. Clearly, in taking a pause, it wants to take pressure off the exchange rate and this is the right call.

“The fact that inflation remains contained is helpful and it has given the Reserve Bank some breathing space.

“We now hope that the Reserve Bank will be able to keep the OCR on hold for an extended period. To be able to do that other government policies need to help rather than hinder.

“This means fiscal responsibility, tight control of spending and wider policies around regulation. Exporters, whether ICT, tourism or the primary industries, need policies to assist rather than impede productivity and competitiveness.

“We hope that the media and commentators will be examining policies and pledges against this prescription,” Dr Rolleston concluded.

For Federated Farmers’ New Season Farm Confidence Survey, please click here.


Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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