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Reserve Bank Governor must cut OCR to protect jobs

Wednesday, 30 January 2013, 12:05 pm
Press Release: Green Party

30 January 2013

Reserve Bank Governor must cut OCR to protect jobs

Reserve Bank Governor Graeme Wheeler must move to lower the Official Cash Rate (OCR) tomorrow to take the pressure off the exchange rate and protect jobs in the export and manufacturing sectors, the Green Party said today.

“With inflation running below expectations and the New Zealand dollar now trading at near record levels, Graeme Wheeler must act to protect jobs in our export and manufacturing sectors by cutting the OCR,” said Green Party Co-leader Dr Russel Norman.

“The Governor cannot continue to sit on his hands while the runaway dollar leads to job losses and reduces the competitiveness of our export sector.

“A lower OCR is likely to take pressure off our overvalued exchange rate, helping exporters and manufacturers who compete with imports.

“A decision to leave the OCR unchanged tomorrow is a conscious decision that will wreck a vital part of the New Zealand economy.

“It’s time for Graeme Wheeler to start fighting for New Zealand’s productive economy.

“The Governor is shadow boxing a non-existent inflation problem, while exporters go to the wall.

“Tomorrows OCR announcement needs to balance the relative problems facing the whole economy, not have a singular focus on inflation when that issue is not our current problem.”

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