Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Reserve Bank not able to address high exchange rate

26 April 2012
Reserve Bank not able to address high exchange rate

A practical approach to monetary policy would allow the Reserve Bank to lower the Official Cash Rate easing pressure on the overvalued New Zealand dollar, Green Party Co-leader Russel Norman said today.

Reserve Bank Governor Alan Bollard left the OCR unchanged today at 2.5 percent despite low inflation citing strength in the housing sector as a reason not to lower the OCR.

“If the Reserve Bank had other tools at its disposal besides the OCR, it could have reduced interest rates today while using other mechanisms to keep house prices in check,” said Dr Norman.

“That would take the pressure of our overvalued exchange rate and help exporters.

“The Reserve Bank could actively manage the risks to the economy of another housing price bubble with other monetary policy tools like increasing banks’ domestic capital requirements and more stringent loan-to-value lending criteria.

“The Bank just needs the Government to give it a broader mandate to use a wider range of tools.

“Complementary fiscal measures like a comprehensive capital gains tax (excluding the family home) would also assist with the rebalancing and further reduce the pressure on our overvalued kiwi dollar.

Dr Norman expressed concern that the National Government’s current economic management was failing to address the worsening current account deficit.

“Current monetary policy is no longer working well for the New Zealand economy,” Dr Norman said.

“It’s time to think different and follow the successful lead countries like the USA, the UK, and Switzerland have taken to reduce the pressure on their exchange rates and get their countries exporting again,” Dr Norman said.
ends


________________________________________


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Principals' Federation:
End Of National Standards

Today the Minister of Education announced that the Government has stopped the controversial National Standards system of assessment and declared them an arbitrary measure which did not raise children's achievement as the previous Government intended.

"This is such a win for all the principals who never believed in national standards and who, for the past decade, have argued for what is morally right for our nation's young people and their learning," said Cormick. More>>

 

Public Good: People’s Report On Public Broadcasting And Media Presented

The People’s Commission on Public Broadcasting and Media, was crowdfunded and was informed by an extensive consultation, seeking the views of both those working in Media as well as gathering input both online and in person from ordinary Citizens. More>>

ALSO:

RBNZ To RNZB: PM's Press Conference

Prime Minister Jacinda Adern was joined by Minister of Finance Grant Robertson and Minister for Children Tracey Martin to announce the appointment of Adrian Orr as the new Governor of the Reserve Bank and the name change of the Ministry for Vulnerable Children to ‘Oranga Tamariki - Ministry for Children’. More>>

ALSO:

'Taming Globalised Capital': Why Is Labour Supporting Investment Rules In WTO?

‘Today, we learned the new government has added New Zealand’s name to a proposal designed to lead to foreign investment rules in the WTO at this week’s ministerial meeting in Argentina,’ said Auckland University Professor Jane Kelsey. More>>

ALSO:

Gordon Campbell: On The Politics Of Scaring Voters Back Into Line

Fear has always been a useful mobilising tool in politics… yet in 2017, bogeymen of all shapes and sizes seem to have fallen on hard times. For years, the National party had painted itself as being the only reliable defensive bastion against the terrifying prospect of a centre-left government… More>>

ALSO:

Gordon Campbell: On Drinking Water As A Failure Of Political Leadership

It is almost possible to feel sorry for the Health Ministry in their terrible, no good, very bad week... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages