Thursday, 26 July 2007

United Future regrets OCR increase

United Future leader Peter Dunne says he deeply regrets the Reserve Bank's decision to raise the official cash rate from 8% to 8.25%.

"It seems to me the market has already factored in the Bank's move, made its decisions accordingly and effectively negated the Bank's aim of reining in inflation," he says.

"Furthermore, the Governor has very kindly told overseas investors in the New Zealand dollar there won't be any more increases for a while, so they'll have time to gradually unwind their positions on the currency markets.

"Meanwhile, New Zealand exporters continue to be hammered by the over-valued dollar.

"There seems little point to the whole exercise if the price of controlling inflation is the death of the productive economy," said Mr Dunne.

ENDS

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