11 JUNE 2015

Reserve Bank Admits It’s Been Wrong

The Reserve Bank’s cut to the official cash rate is an admission it has been wrong all along, says New Zealand First.

“Today’s action is way too little, way too late,” says New Zealand First Leader and Member of Parliament for Northland, Rt Hon Winston Peters.

“The hands-off approach has not worked.

“The chronically overvalued dollar has made life tough for our exporters, particularly industries that are adding value, including farming and sawmills.

“This crippling period of inaction from the bank has led to a crisis in provincial New Zealand. There’s been closure after closure, many being the fault of the high dollar.

“We all expect to reap the rewards from our export economy but it will not happen if the bank and the government put obstacles in the way of our export producers.

“We have allowed the Key government to favour currency speculators when we should have been working for our own economy.

“A few cheaper consumer goods does not make up for business shut downs, job losses and a drift to the city.

“Confronted with bloated Auckland house prices, much of it driven by mass immigration and offshore house buying, the government and the Reserve Bank Governor’s reaction has done nothing to stop Auckland house prices soaring, whilst punishing export producing provincial New Zealand.

“What is clear is that these gentlemen don’t know what they are doing, and provincial New Zealand is fast waking up to it,” says Mr Peters.

ENDS

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