Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


A Bridge too far...

Canterbury Manufacturers’ Association (CMA) Media Release.
24 July 2007.

A Bridge too far….

The Canterbury Manufacturers’ Association (CMA) is warning that the NZ Dollar will continue its upward momentum having broken through the USD.80 threshold and is calling on the Reserve Bank not to hike the OCR in this week’s monetary statement.

“Six weeks ago we called for an increase in the hope that things would rapidly come to a head and the political need for change would crystallise. Unfortunately, that never happened, but the NZD is now over USD.80c and if that is not enough of a disaster for immediate action, what is?” says Chief Executive John Walley.

“A hike in the OCR on Thursday is further confirmation that current monetary policy is in meltdown – right now a failed experiment. Although medium range forecasts for inflation continue to look bad, forecasts need to be discounted against the reality of what is happening at present. Therefore, our message at this time is to hold interest rates at current levels and hopefully our exporters will gain some respite from the strong dollar”.

“Although most exporters would welcome a cut in the OCR of 3 percent, such a move is a bridge too far for the Reserve Bank. Therefore, there is no reason to expect that the NZD will reverse its current upward course on the back of the interest rate spreads that provide the money to drive house prices and fuel inflation, causing monetary policy to further drive interest rate spreads. All the while the Government remains on the sidelines pushing the same old buttons that have long since failed to work”.

“The correction in the exchange rates needs to happen sooner rather than later, before New Zealand loses more exporting activity and capability and if that means sharing the exporters pain amongst the speculators, Japanese housewives and Belgian dentists, then that is what needs to happen”, says Mr. Walley.

“The ends of killing domestic inflation need revision if it means killing the export sector. Those who argue that exporters can live with the dollar at these levels, or can plan around it, don’t fully understand exporting, have their hands tied and cannot say otherwise and they certainly do not live in world as the people I talk to”.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>

Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>

OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>

Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>

ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>