Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


Reserve Bank opts for ideology over jobs

31 January 2013
Reserve Bank opts for ideology over jobs

The Reserve Bank decision to keep the Official Cash Rate (OCR) unchanged today will hurt the productive economy and result in further job losses, the Green Party said today.

In its statement today, the Reserve Bank admitted that inflation remained subdued and was below the bottom of the Bank’s inflation target range. The Bank also admitted that the overvalued currency is “undermining profitability in export and import competing industries”.

“By not cutting the OCR today, Graeme Wheeler is helping to wreck our export and manufacturing sectors and the valuable jobs they create,” Green Party Co-leader Dr Russel Norman said.

“A lower OCR would have taken pressure off our overvalued exchange rate, helping exporters and manufacturers who compete with imports.

“Graeme Wheeler needs to roll up his sleeves and start fighting for New Zealand’s productive economy.

“Simply talking about our overvalued dollar is no longer enough. In fact, the dollar rose even further after his announcement today.”

Dr Norman today released a Reserve Bank paper that shows that the Bank has been discussing complementary tools to the OCR since at least May last year. The Bank believes introducing loan-to-value ratios would reduce house price inflation.

“The Reserve Bank has known since at least the middle of last year that complementary tools, like loan-to-value ratios, could be used to control house price inflation which then give the Bank greater room to cut the OCR to help rebalance the economy and create jobs,” Dr Norman said.

“The Reserve Bank can use the multiple tools at its disposal to control house price inflation while lowering interest rates to bring down the dollar and give exporters a break.

“Other central banks are following such smart policies, but New Zealand seems to have one of the most ideologically rigid central banks in the world, costing our economy exports and, most importantly, jobs.”

Link to Reserve Bank document “Alternative Policy Instruments”:
http://www.greens.org.nz/sites/default/files/reserve_bank_alternative_policy_instruments_may_2012.pdf


© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Valerie Morse: Key And NZ Police At G20: What A Contribution

While 200 New Zealand police officers are helping to repress protests outside of the G20 in Brisbane this week, John Key has been inside pushing the interests of giant multinational corporations to fast track the World Trade Organization (WTO) ... More>>

ALSO:

Gabriela Coutiño: Ayotzinapa Caravan Meets With EZLN In Oventic

In their visit to Zapatista Territory, parents of the 43 students disappeared from Ayotzinapa Guerrero, agreed with the Zapatista National Liberation Army (EZLN), to articulate a national grassroots movement that would question forced disappearances ... More>>

Ramzy Baroud: Talk Of A Third Intifada: Where To From Here, Palestine?

When a journalist tries to do a historian’s job, the outcome can be quite interesting. Using history as a side note in a brief news report or political analysis oftentimes does more harm than good. More>>

ALSO:

David Swanson: Who Says Ferguson Can't End Well

Just as a police officer in a heightened state of panic surrounded by the comfort of impunity will shoot an innocent person, the Governor of Missouri has declared a state of emergency preemptively, thus justifying violence in response to something ... More>>

Melanie Duval-Smith: Homeless Is Where The Heart Is

So, you are not allowed to feed the homeless on the streets of Florida. Last week, a 90 year old man and two Christian ministers were arrested for doing just that. I can hear the cries of the right wingers from here. “Not in our back yard”, ... More>>

John Chuckman: What We Truly Learned From the Great War and the Absurdity of Remembrance Day

No matter what high-blown claims the politicians make each year on Remembrance Day, The Great War was essentially a fight between two branches of a single royal family over the balance of power on the continent of Europe, British foreign policy holding ... More>>

Redress Information: A European Call To Suspend EU-Israel Association Agreement

More than 300 political parties, trade unions and campaign groups have called on the European Union to suspend its “association agreement” with Israel. The agreement, which came into force in 2000, facilitates largely unrestricted trade with Israel ... More>>

Ramzy Baroud: The Age Of TV Jokers: Arab Media On The Brink

As I was finalizing my research for this article, I found myself browsing through a heap of hilarious videos by mostly Egyptian TV show hosts Tawfiq Okasha and Amr Adeeb. More>>

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news