Reserve Bank Killing Export Sector

Rt Hon Winston Peters is calling on the Reserve Bank not to raise interest rates tomorrow and is warning the Government that higher interest rates will lift the dollar even further and cripple exporters.

“New Zealand now has the highest interest rates in the developed world and exporters are struggling to survive as a result,” said Mr Peters.

“The New Zealand dollar has risen to artificially high levels and immigration is down, so the claim that rates must be raised to curb inflation is a cop-out. The Official Cash Rate is already too high at 6.5 percent.

“When will this Government understand that the key to our economic success lies in building our export sector – not creating an importers heaven?

“Isn’t the Balance of Payment crisis bad enough already? “Does the Government not have any counter-inflationary measures? “The basis of an effective economic plan must be to have a Kiwi dollar that helps increase exports.

“We must have an export plan which targets potential markets and a Government attitude that supports export growth instead of having a Reserve Bank that stifles it.

“Already interest rate increases are seriously hindering our economic growth,” concluded Mr Peters.

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