11 September 2008

Interest Rate Cut A Bid To Revive Growth

Today’s 0.5% cut in the Official Cash Rate confirms the Auckland Chamber of Commerce’s assessment for some time of a domestic and global economy continuing to slow down and weaken.

“The half percent cut in the OCR – double what the market was expecting – is a welcome fast tracking of an easing previously signalled,” said CEO Michael Barnett.

The Chamber agreed with Reserve Bank Governor Alan Bollard’s decision to try and accelerate a growth revival and let inflation take care of itself.

Mr Barnett urged the banking sector to quickly pass on the reduced OCR from 8% to 7.5% with lower interest rates to customers.

ENDS