Federated Farmers welcomes OCR announcement

11 June 2015

Federated Farmers welcomes OCR announcement

Federated Farmers welcome the Reserve Bank’s decision to cut the Official Cash Rate to 3.25 percent.

Dr William Rolleston, Federated Farmers President says “This is a decisive message from the Reserve Bank which will take pressure off the dollar, which is vital for farmers who are experiencing low prices at the moment.”

“Farmers cash flow is tight at the moment, whether it is due to the dairy payout or the drought, so any reduction in the Official Cash Rate that will reduce the interest farmers are paying on their bank loans will be incredibly helpful during this difficult period.”

“The reduction will also hopefully see further reduction in the exchange rate, to a level that is justifiable in relation to economic fundamentals such as the levels of world commodity prices.”

“Federated Farmers looks forward to further OCR cuts in the coming months.” Dr Rolleston concluded.

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