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

 

OCR should be cut to spur growth in productive economy

The Reserve Bank of New Zealand (RBNZ) should be seriously considering a cut in the Official Cash Rate (OCR) for tomorrow’s decision. With inflation remaining low and a currency which has been overvalued for a long time, a cut to the OCR could help improve conditions for manufacturers and our productive economy.

“Inflation remains low at 1.1% annually and our OCR, at 1.75%, still sits above most of our trading partners. Instead of signalling holding interest rates for longer, the RBNZ should go ahead and cut to help boost the productive sectors of our economy and help further moderate our high exchange rate to improve conditions for exporters and import competing manufacturers.” says Dr Dieter Adam, CE, The Manufacturers’ Network.

“The RBNZ has done some good work in the field of macro-prudential tools (Loan to Value Ratios) to help sure up the financial stability risk of bank lending into the housing sector - this should give RBNZ additional confidence to cut the OCR now. We would encourage the Bank to continue this work in this area, particularly in Debt to Income ratios." said Dr Adam.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up $1.20: $17.70 Minimum Wage Next Year

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Reserve Bank: Capital Proposals Are 'Radical', Says Fitch

International credit rating agency Fitch says the Reserve Bank's proposals for increased bank capital adequacy ratios are "radical" and "highly conservative relative to international peers", but the result will ultimately be "significantly stronger buffers" against financial system shocks. More>>

ALSO:

Regions And Skills: Work Visa Proposals 'Step In The Right Direction'

Immigration Minister Iain Lees-Galloway announced yesterday that the Government is consulting on proposed changes to employer-assisted temporary work visa settings to ensure that work visas issued reflect genuine regional skill shortages. More>>

ALSO:

Long Commutes: Hamilton To Auckland Passenger Rail Trial Gets Green Light

The NZ Transport Agency Board has approved a business case for the next steps in a start-up trial Hamilton to Auckland passenger rail service, Transport Minister Phil Twyford announced. More>>

ALSO:

Working Group Update: Mycoplasma Bovis Eradication Making Substantial Progress

International experts are impressed by New Zealand’s efforts to eradicate the cattle disease Mycoplasma bovis and are more confident the campaign is working... More>>

ALSO: