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

Gordon Campbell: A Govt. Christmas Bad News Dump -The Skycity Convention Center Blowout & A Negative MBIE Review

If the government really did have good tidings of great joy you can bet it wouldn’t be strewing them about at Christmas time – which is, traditionally, the dumping ground for terrible news that the government fervently hopes the public will be too distracted to notice. And so verily this Christmas Eve we learn of (a) the explosion of costs to the taxpayer and ratepayer of the vile SkyCity convention centre in Auckland and that (b) the government’s flagship MBIE “super-ministry” run by its Minister of Everything is a disaster zone of incompetence and mismanagement. MBIE is a Titanic looking for an iceberg, or so it would seem. More>>

 

Parliament Adjourns:

Greens: CAA Airport Door Report Conflicts With Brownlee’s Claims

The heavily redacted report into the incident shows conflicting versions of events as told by Gerry Brownlee and the Christchurch airport security staff. The report disputes Brownlee’s claim that he was allowed through, and states that he instead pushed his way through. More>>

ALSO:

TAIC: Final Report On Grounding Of MV Rena

Factors that directly contributed to the grounding included the crew:
- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news