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.
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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?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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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.
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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.
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30/10/14

Low inflation takes pressure off OCR


Print-friendly 0 comment(s) Posted in: In the media

The Reserve Bank of New Zealand (RBNZ) today held the OCR at 3.5%, as the lower than expected inflation backdrop means the OCR can be held for longer, and even cut in the future, say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “Lower inflation pressure could mean slowing, stopping or reversing the RBNZ's long signalled policy rate changes. Any action or anticipation of such action will help reduce pressure on our already overvalued currency, which the RBNZ once again characterised as “unjustified and unsustainable”."

“If domestic inflation pressure remains low and economic growth slows, the RBNZ should seriously consider policy rate reductions to promote growth, particularly for exports, and bring interest rates closer to those in the rest of the world, thereby taking pressure off our currency.”

“As for asset price inflation, recent comments from the RBNZ indicate that the macroprudential measures are working in the housing sector, providing more room to move on interest rates to lower the currency.”

“Greater use of macroprudential tools is important for controlling financial stability while decreasing our reliance on the blunt tool of the OCR, which can have damaging effects in the tradable sector – we encourage the RBNZ to continue work in this area.”

“It feels like forever that the tradable sector has been doing the heavy lifting on inflation, continuing to do this is not sustainable in the long run. Action now from the RBNZ could help better balance our economy, compensating for soft commodity prices and returns for other exporters.”



tags: exports, currency, exchange rate, rbnz, interest rate, ocr, macroprudential, lvr

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