Comments

David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
(view article + comment)
David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
(view article + comment)
siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
(view article + comment)
Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
(view article + comment)
John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
(view article + comment)

Recent News

House price increases slow as new lending rules begin to take effect - QV - Stuff Business, 1 Nov 2016 New Zealand's hot housing market is showing signs of cooling down.

Global debt hits $152 trillion - New Zealand Herald, 6 Oct 2016 Global debt has hit a record high of US$152 trillion (NZD$217 trillion), weighing down economic growth and adding to risks that recovery could turn into stagnation or even recession, the International Monetary Fund has warned.In...

Business owners confident in economy - survey - 3 News Business, 4 Oct 2016 Kiwi businesses were more optimistic about the state of the economy and their own activity in the September quarter, even as their profits were squeezed. ...

Households losing wealth as debt keeps going up - Stuff Business, 4 Oct 2016 New Zealanders have become poorer over the past year.

Signs of challenges for exporters - NZMEA survey - Voxy, 6 Sep 2016 The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during August 2016, shows total sales in July 2016 decreased 15.27% (year on year export sales decreased by 20.48% with domestic sales decreasing by 6.03%) on July 2015.

.
Ad enquiry


26/7/12

OCR cut and macro prudential tools needed


Print-friendly 3 comment(s) Posted in: In the media

An Official Cash Rate (OCR) cut to help exporters, and explicit and greater use of macro prudential tools to prevent another property bubble are needed say the New Zealand Manufacturers and Exporters Association (NZMEA). The Reserve Bank left the OCR on hold at 2.5 percent this morning.

NZMEA Chief Executive John Walley says, “An interest rate cut is needed to relieve exchange rate pressure on the export sector. Prudential requirements of higher capital reserves for asset backed lending are needed to offset the impact of lower interest rates on asset markets.”

“History has shown we cannot deal with both issues using only one tool - interest rates.”

“The trade deficit in the June quarter demonstrates we cannot afford to continue with this policy.”

“The Government has talked a lot about the stagnation of the tradable sector in the graph above. Something must be done to deal with an overvalued exchange rate to have any hope of an export led recovery and reverse this situation.”

“In the end some action must follow the talk. If we don’t change anything we can expect the tradable sector flat line to continue or get worse.”
 



tags: rbnz, ocr, exchange rate, macroprudential tools, property bubble

comments

3 Comment(s)



Bushman - 26 July 2012 at 10:54 AM
No interest rate cut. Not even considered. The message is be happy with what you have got. Inflation is rock bottom who cares about the exporters!
Bushman - 22 August 2012 at 10:53 AM
Record profits by banks whilst the economy and export sector is struggling. Have I got this wrong or is this economy 'tailor made' for the banking system. Yes, the profits have been coming from increased margins on interest. Where is our OCR? One percent higher than it should be according to international rates. What do we do? Grin and bear it or hope that our new Reserve Bank board can turn this rubbish round where Bollard couldn't or wasn't prepared to do anything!
Peter Hume - 22 August 2012 at 14:11 PM
A struggling export sector means inflation within the RBNZ's target band. We need to see changes in the Reserve Bank Act so that export growth becomes a target. Hopefully the new Governor will shake things up.

Name:
Email:
Website URL:
Comment:
Remember Me:
Email Replies:
Please play the ball not the man.