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

 


Stable inflation expectations show rate hikes not the answer

25 February 2014

Stable inflation expectations show interest rate hikes not the answer

Stable inflation expectations released today show that the Reserve Bank doesn’t need to start hiking interest rates, Green Party Co-leader Dr Russel Norman said.

The Reserve Bank released its March 2014 Survey of Inflation Expectations this afternoon which shows that inflation prospects remain stable at two percent – the mid-point of the Bank’s Policy Targets Agreement.

The last Consumer Price Index figures released by Statistics New Zealand show that inflation was 0.1% in the December quarter and 1.6% in the past year. Housing and electricity were significant contributors to the little inflation there was. The Reserve Bank has indicated it intends to raise interest rates this year.

“New Zealand families don’t deserve to be hit with higher mortgage rates when inflation is stable,” said Dr Norman.

“Raising the Official Cash Rate now would hurt the economy and hurt families with mortgages.

“We need smart policies to address inflation in the sectors where prices are rising too rapidly – the Auckland housing market and National’s broken electricity system.”

The Green Party has laid out practical steps to address rising housing and power prices.

“The Greens will introduce a capital gains tax, restrictions on the foreign buy-up of housing, a government-led programme of affordable house building, and Progressive Ownership for first home buyers to stabilise house prices,” Dr Norman said.

“Our NZ Power plan will bring an end to spiralling electricity prices.

“New Zealand’s interest rates are already high by international standards, which contributes to our over-valued currency. Pushing interest rates higher would just hurt exporters, widen our current account deficit, and destroy jobs.

“We need smart policies to fix the causes of inflation, not the blunt tool of higher interest rates that hurts families and businesses,” said Dr Norman.

More information:

Reserve Bank Inflation Expectations

http://www.rbnz.govt.nz/statistics/tables/m14/

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Discussion Document: Fresh Look At Family Violence Laws

A discussion document launched today takes a hard look at the way the law prevents and responds to family violence, and proposes a comprehensive rethink to strengthen New Zealand’s legislative response. More>>

ALSO:

PM's Presser: ‘Precarious’ Solid Energy In Banks’ Hands

Liquidation of state-owned coal company Solid Energy “cannot be ruled out” but is “not the number one preferred option of the government,” says Prime Minister John Key, who confirmed the beleaguered company was discussed today at Cabinet as its banking syndicate grapples with its commercially dire prospects. More>>

ALSO:

Missed Opportunities: Amnesty International Report Card On NZ's UN Role

As New Zealand steps down from its month as President of the Council, Amnesty International has taken the opportunity to review New Zealand’s role on the Council so far and assess their performance and contribution to protecting human rights worldwide. More>>

ALSO:

Prince Charles Get More Jobs: PM Announces Honorary Military Appointments

PM John Key has announced that Her Majesty The Queen has approved the appointment of HRH The Prince of Wales to three honorary positions: Admiral of the Fleet of the Royal New Zealand Navy; Field Marshal, New Zealand Army; Marshal of the Royal New Zealand Air Force. More>>

ALSO:

No TPP Deal: Gordon Campbell On Why We Should Still Oppose Investor-State Dispute Measures

Even in this dark hour for the TPP, the secrecy farce continues... What is left to hide? Every single negotiator went into those talks in Maui knowing exactly where everyone else stood. More>>

REACTION:

Salvation Army On Homelessness: Hard Times In West Auckland

The report details an uncomfortable story of people whose only option is to live an unhealthy, dangerous and damaging street life... The social housing needed by these people is not currently available in sufficient quantity. More social housing is required in the West. More>>

ALSO:

Message For PM: NZ Supports Te Reo Māori – You Should Too

As Māori Language Week celebrations and commemoration of 40 years draws to an end, the Māori Language Commission, Te Taura Whiri i te Reo Māori, is once again hugely encouraged by the widespread support for Māori language from throughout the country ... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news