Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Interest rate cut no surprise

Interest rate cut no surprise

The Reserve Bank's quarter per cent cut to interest rates today won't be the last this year, the Employers & Manufacturers Association (Northern) says.

"With tourism stumbling, exporting stalled, and production other than for housing going south, the interest rate cut today looks cautious," said EMA's chief executive Alasdair Thompson.

"New Zealanders should be concerned that we haven't seen more investment in skills and equipment that can expand our value added production base while the good times lasted.

"But investment growth has largely been restricted to primary agriculture and housing stock, neither of which has the capacity to sustain our standards of living should a world recession take hold.

"With our interest rates still well above Australia's, and 3.75 per cent higher than the US official rate, arbitrage activity has seen our exports contributing to the wealth of US and other managed funds offshore.

"We have consistently said our interest rates have been on a higher plateau than necessary. We are optimistic the Reserve Bank will come to the same conclusion.

"To stimulate investment-led growth we need to see a one off downward adjustment to re-align our economic prospects more realistically with those of our major trading partners."

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>


Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election