INDEPENDENT NEWS

Interest Rate Cut will Provide Welcome Boost

Published: Thu 11 Sep 2008 11:37 AM
Interest Rate Cut will Provide Welcome Boost for Businesses
The Wellington Regional Chamber of Commerce welcomes today’s 0.5% cut in the Official Cash Rate and urges the banks to follow suit with interest rates reductions.
“High interest rates are amongst our members’ most commonly cited concerns and today’s move will provide a much needed boost to business confidence,” said Chamber CEO Charles Finny.
“High interest rates have had a triple whammy affect on businesses and the economy through high debt servicing costs, reduced consumer demand and also the effect on the currency.
“We agree with Reserve Bank Governor Alan Bollard’s assessment of the domestic and global economy and that a less restrictive monetary policy stance is appropriate.
“We believe falling oil prices and the slowing economy will offset the inflationary impact of a lower New Zealand dollar and today’s greater than expected cut was justified.
“We are pleased with the financial markets initial reaction to the statement and the fall in wholesale interest rates.
It is now up to the banking sector to pass on these reductions to both businesses and households quickly,” Mr Finny concluded.
ENDS

Next in New Zealand politics

Concerns Conveyed To China Over Cyber Activity
By: New Zealand Government
GDP Decline Reinforces Government’s Fiscal Plan
By: New Zealand Government
New Zealand Provides Further Humanitarian Support To Gaza And The West Bank
By: New Zealand Government
High Court Judge Appointed
By: New Zealand Government
Parliamentary Network Breached By The PRC
By: New Zealand Government
Tax Cuts Now Even More Irresponsible
By: New Zealand Labour Party
View as: DESKTOP | MOBILE © Scoop Media