Bollard still on the treadmill

"Bollard's six weekly OCR workouts is an exercise in futility" says John Pemberton, Finance Spokesman, DSC . "Our exchange rates have just reached record highs since the float of the dollar, and now with a further lift in the OCR we will see it rise further still."

"We are rapidly reaching a time were there will be no hope for New Zealandfamilies" Pemberton says. "Rising cost in all aspects of the family budget will increase as businesses return to the 'cost plus' mentality, recovering their ever increasing costs caused by ever increasing debt servicing."

"In a previous media release (20 April 2007) headed 'Dr Bollard the Inflation Driver', I said that 'it could be 1988 all over again as interest rates are driven to the devastating levels of 20%.' It becomes even more of a reality with this increase."

"The continued investment from overseas punters chasing high returns, along with the government's encouragement to the wealthy to immigrate to New Zealand, will continue the pressure upwards on our exchange rate." Pemberton declares. "It will only lower the value of the deserved high returns from the dairy sector, and will surely punish even further those in other export sectors."

"The increase in our nation's money supply by some $25 billion dollars over the last 12 months will further increase and thus continue to feed the inflationary cycle with ever increasing high interest loaded debt.

"Get off the treadmill now Dr Bollard!"

ENDS

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