Reserve Bank Should Continue Downward Trend
New Zealand First leader Winston Peters has welcomed the reduction in the Official Cash Rate to 5.25 percent but has
urged the Reserve Bank to continue the downwards trend in interest rates.
“As business confidence continues to fall and our domestic economy survives on the artificial outcomes of higher
immigration, the Governor needs to drop the rate further and, in the short term, at least match Australia’s 4.75
percent.
“The conservative path of following others has artificially denied liquidity and propped up interest rates at a cost of
hundreds of millions of dollars.
“New Zealand’s continued reliance on immigration to fuel internal consumption rather than developing a meaningful plan
for expanding exports requires braver monetary policy decisions. This is a small step in the right direction,” Mr.
Peters said.