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


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>


Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>


More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news