Parliament

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

 

Labour urges RBNZ not to jump gun on rates

Labour
2000 web site
"Today's CPI result shows there is no immediate pressure on the Reserve Bank to push up interest rates in the November 17 Monetary Policy Statement," Labour finance spokesperson Michael Cullen said.

He urged the RBNZ Governor, Dr Don Brash, to "take a deep breath" before raising the overnight cash rate.

"While the CPI increase for the September year at 1.3 percent, is broadly in line with the RBNZ's forecasts, the fact is that the quarterly movement was mostly a reflection of one-off factors.

"The big contributers, apart from petrol prices, were a 25.4 percent increase in motor vehicle relicensing, registration and warrant of fitness fees as a result of government policy changes.

"There is little evidence at this stage of any serious accumulation of inflationary pressures in the economy.

"I would therefore urge Dr Brash to move cautiously on interest rates, especially given figures this week showing a growing number of New Zealanders are already on the edge financially and could ill-afford an increase in credit costs.

"The debt collection agency, Baycorp, has reported that the failure rate among people it ran credit checks on in the first half of this year was 22.8 percent - up from 19.7 percent in the same period last year.

"And budgeting advice groups are experiencing a huge increase in the numbers of New Zealanders seeking budgeting advice and unable to pay their bills.

"An increase in interest rates could be devastating for these households and should be avoided for as long as possible," Dr Cullen said.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Charlotte Graham: Empowering Communities To Act In A Disaster

The year of record-breaking natural disasters means that in the US, as in New Zealand, there’s a conversation happening about how best to run the emergency management sector and what philosophies best engage and protect communities in the event of a crisis.

How much of the responsibility for a community’s safety in a natural disaster is the Government’s, and how much can be left up to the community themselves? And how do we ensure none of our most vulnerable residents are left behind? More>>

 

CPAG Report: The Further Fraying Of The Welfare Safety Net

New Zealand’s welfare system has undergone a major transformation during the past three decades. This process has seriously thwarted the original intent of the system, which was to provide a decent standard of living for all New Zealanders in times of need... More>>

ALSO:

Signage, Rumble Strips, Barriers: Boost For State Highway Road Safety

Boost for road safety this summer Associate Transport Minister Julie Anne Genter today announced a short term boost in road safety funding this summer and signalled a renewed focus from the Government on introducing safer speed limits. More>>

ALSO:

Risks & Adaptation: Cheaper To Cut Emissions Than Deal With Climate Change

The cost of climate change to New Zealand is still unknown, but a group of experts tasked with plugging the country's information gaps says it will likely be significant and it would be cheaper to cut greenhouse emissions than simply adapting to those changes. More>>

ALSO:

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages