Manufacturing Exporters Welcome Reserve Bank Stay
Media Release 15 September 2005
Manufacturing Exporters Welcome Reserve Bank Stay on Interest Rates
With the high New Zealand dollar squeezing exporters and causing a blow out in the current account deficit, the news that the Reserve Bank of New Zealand has held interest rates is greatly welcomed, especially by exporting manufacturers,” according to Alasdair Thompson, Chief Executive, Employers & Manufacturers Association (Northern).
“The slowing economy does not need to be crunched into recession.
“However, irrespective of the outcome of the election, there will be a considerable loosening of fiscal policy from either increased spending (Labour) or tax cuts (National) and that could well put pressure on interest rates going forward.
“In the meantime we all have to accept that oil prices have risen causing downstream price increases (inflation) which means we’re all that much worse off. That fact cannot be changed by monetary policy,” concluded Mr Thompson.