22 JULY 2015

Official Cash Rate Belies National’s Soothing Words

While National vaingloriously talks up the economy, ill local and international economic winds have forced the Reserve Bank into an official interest rate cutting cycle, says New Zealand First.

“This second cut to the OCR is all a little too late and too little,” says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

“Decisive action like a 50 basis point cut was needed, yet this is the same Reserve Bank Governor who last year increased interest rates four consecutive times.

“Everything is not fine and dandy with the economy as Mr Key and his minions who banked the farm on China wish to believe. The news out of which gets grimmer by the day.

“Only yesterday, concerns about the true health of the Chinese economy saw US$40 billion wiped off the value of Apple. The effects of this downturn would be lessened if Mr Key allowed our dairy exporters to sell to the world’s number two dairy importer, Russia.

“Mr Key’s government blocking Russia, only denies New Zealand dairy exporters a viable market because he wishes to look good with fellow members ‘of the club’,” says Mr Peters.

ENDS

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