CTU media release
29 October 2009
Climbing out of recession still an issue
The signal today from the Reserve Bank that the OCR would not lift until the second half of 2010 is a clear indication that inflation is not an issue in the economy at this time but climbing out of the recession still is, said CTU Economist and Policy Director Bill Rosenberg.
“A long period of recovery with relatively high levels of unemployment is still forecast, even though the levels are not as high as previously predicted. We are still seeing layoffs, and as the Reserve Bank comments, any recovery is still fragile,” said Rosenberg.
“If anything, a further reduction in the OCR should be considered.”
“There is also a case for the Reserve Bank to use new tools such as making low interest finance available for productive investment.”