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


Labour urges RBNZ not to jump gun on rates

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


Gordon Campbell: On Reforming Parliament’s Toxic Culture

It would be nice to think Parliament was a forum where rationality ruled – and where policies are raised and evaluated in terms of their contribution to the greater good. Obviously, it isn’t like that... More>>

Historic Assualt Allegation: Parliamentary Service Staff Member Stood Down
Rt Hon Trevor Mallard said today: “I do not want to cut across any employment or possible police investigations, but I am satisfied that the Parliamentary Service has removed a threat to the safety of women working in the Parliamentary complex." More>>


Study: Guidelines Needed To Avoid Risks In Government AI

New Zealand is a world leader in government algorithm use – but measures are needed to guard against their dangers. This is the conclusion of a New Zealand Law Foundation-funded report from the University of Otago’s Artificial Intelligence and Law in New Zealand Project. More>>


Pike River: Families Welcome Opening Of Drift

The group representing 29 of the Pike River Families - the Pike River Family Reference Group - has welcomed the unsealing of the mine at a private family event this morning... More>>


Auckland Harbour Bridge: New Design For Walking And Cycling Crossing

The NZ Transport Agency has released plans for its preferred option for a shared path over the Auckland Harbour Bridge which will transform walking and cycling not only across the harbour, but throughout the city. The Transport Agency says its preferred ... More>>


Shaw First Reading Speech: Climate Change Response Bill

Madam Speaker, today we begin the task of amending the Climate Change Response Act [2002], to fulfil the commitment that we have made, as a country, to limit global warming to no more than 1.5 degrees Celsius above pre-industrial levels. More>>


Housing: More Unsold Kiwibuild Houses Bought By Govt

The Crown underwrite for unsold Kiwibuild homes has been triggered for a second time. Now lack of sales in Mike Greer's development in Canterbury and Auckland means the government has had to buy back seven more homes. More>>


camouflageGordon Campbell: Why We Shouldn’t Genuflect To Security

Reportedly most (and possibly all) of the Royal Commission investigation into the Christchurch mosque shootings will be closed to the general public and to the media… More>>




InfoPages News Channels