Rt Hon Winston Peters
New Zealand First Leader
Member of Parliament for Northland
28 APRIL 2016

Time for Straight Talk

In its typical bland and hedged way today’s Reserve Bank announcement points to the proliferating risks facing the New Zealand economy from both international and domestic conditions, says New Zealand First Leader and MP for Northland Rt Hon Winston Peters.

“On the international economic outlook the Bank declares:

‘The outlook for global growth has deteriorated over recent months due to weaker growth in China and other emerging markets.’

“Reality: After almost eight years of unprecedented monetary stimulus and low interest rates by central banks world economic growth remains fragile and uncertain.

“Today’s statement declares: ‘Domestically, the economy is being supported by strong inward migration ...’

“Reality: New Zealand has had years of record immigration.

“Similarly, today’s release includes this statement of the blindingly obvious:
‘House prices remain at very high levels and additional housing supply is needed.’

“Reality: Auckland’s property bubble is an epidemic spreading throughout New Zealand.

“In theory, the Reserve Bank is independent of the government of the day. If, from time to time, it does not criticise the government’s policies, or lack of policy, then it cannot really claim to be independent.

“New Zealand First calls on the Reserve Bank to come down from Mount Olympus and end its addiction to Delphic pronouncements. New Zealanders deserve straight talking,” says Mr Peters.

ENDS

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