24 April 2003

John Wright, Progressive spokesperson

Interest rate cut good for jobs, bad for dollaroo

Today’s decision by the Reserve Bank to cut interest rates will be good for jobs, Progressive spokesperson John Wright says.

And he says today’s decision highlights the folly of those who want New Zealand’s currency integrated with Australia’s.

“Today’s interest rate cut is pro-jobs,” John Wright said.

“It shows the benefit of having New Zealand control of monetary decisions, with decisions being made in response to our specific economic conditions and outlook.

“Economic commentators are predicting some challenging times ahead for the economy, with the drop in world prices for agricultural commodities, and the severe flow-on effects of the Iraqi war and the SARS virus on tourism and other export industries. It is appropriate for New Zealand monetary conditions to adjust to that outlook,” John Wright said.

ENDS