Copeland supports aggressive reduction in OCR

United Future spokesperson on finance Gordon Copeland has signalled his agreement with the call on the Reserve Bank to cut the official cash rate sooner rather than later.

"New Zealand's underlying economic momentum continues to slow down and growth this year at around 2% is likely to be less than half of the 4.5% we saw through till March 2003. Inflation has been contained and is now benign.

"Although there is now some optimism about growth in the US economy, over all world wide economic activity remains weak.

"These factors combined appear to provide the perfect opportunity for the Reserve Bank Governor to speedily cut the OCR to at least match Australia's 4.75%.

"Treasurer Michael Cullen has signalled no further tax cuts until next year's Budget, so in the absence of any plan for a fiscal stimulus we will need to rely on monetary policy and a cut in the interest rate.

"It is now over to Reserve Bank Governor Alan Bollard to read the signs and act rapidly so that the downturn is cushioned, its duration minimised and a pathway back to strong growth in 2004 clearly mapped out."

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