Drop in OCR keeps NZ competitive

The drop in the Official Cash Rate (OCR) has been welcomed by the Employers and Manufacturers Association (EMA).

Chief Executive Officer, Kim Campbell, says the drop by 25 basis points to three percent is in keeping with the trend the EMA has been calling for over the past couple of years.

“Today’s announcement keeps us competitive and is in line with what we’ve said previously. We were deeply concerned when the OCR increased last year, but have been pleased with the downward trend over the past few quarters.

“Our economic fundamentals are strong, and we are still better placed than our major trading partners. There has been some downward movement in key indicators, but our economy is still growing at two and half percent. So let’s not talk ourselves into a recession,” says Mr Campbell.

He says, today’s OCR announcement bodes well for New Zealand’s exporting sector, which will enjoy the benefits of a lower dollar in the long term. It will also benefit our tourism and education sectors, which have enjoyed strong growth this year.

“I think this is the right move to keep New Zealand on a steady economic keel.”

ENDS

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