Soaring Kiwi Calls Governor

New Zealand First has repeated its call to the Reserve Bank Governor to cut the cash rate as the kiwi dollar continues to climb over 60 US cents.

“The Official Cash Rate remains too high because of the immigration-inspired over-stimulation of the housing market. While the Governor will be tempted to use the property market as an excuse for inaction the soaring kiwi demands that he give support to our exporters by cutting the rate now,” said New Zealand First leader, Rt Hon Winston Peters.

“As the kiwi rises our exporters’ prospects diminish. This combination of high interest and exchange rates has become a harbinger of doom for a country struggling to educate, house and provide adequate health care for all of its people.

“This lack of performance has come about through a long term emphasis on the interests of the financial sector at the expense of the productive sector and exporting in particular. It has been exacerbated by long periods with over-valued exchange rates and high interest rates.

“The focus on inflation has impeded growth, especially in recent times when much of the inflationary pressure has been brought about by high immigration of people, far too many of whom end up not constructively engaged in our economy.

“The Reserve Bank has an opportunity tomorrow when it reviews the official cash rate to provide the financial leadership lacking in Government. The bank must at least slash interest rates and bring us into line with Australia – our biggest trading partner,” said Mr Peters.

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