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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25/1/10

Lower for longer must be the message from the RBNZ


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

A negative Cost Price Inflation (CPI) figure for the December quarter means that lower for longer must be the message from Dr. Alan Bollard at the Official Cash Rate announcement on Thursday say the New Zealand Manufacturers and Exporters Association (NZMEA). Low inflationary pressures and little growth as the economy explores the bottom of the recession justify a longer period of stable monetary policy.

NZMEA Chief Executive John Walley says, “Economic surveys are certainly showing that things are getting a little better off a very low base but there is a huge hole to fill; revenue is still down around 20 percent from the peak and jobs are still down around 13 percent. Confidence might be a leading indicator but margin is the precursor to more investment and more jobs. Monetary policy has a part to play in supporting the economy and lowering the exchange rate to give our exporters a chance.”

“The year on year CPI figure of two percent is still well within the target band and there is the potential for it to move down rather than up for at least the next two quarters.”

“A lower dollar is needed to put balance in any recovery, so a firm message from the Reserve Bank that rates will stay low until the end of the year is needed to deliver better conditions for the real economy.”

“Hopefully a lesson has been learnt from earlier optimistic announcements that caused unnecessary rises in the New Zealand dollar.”



tags: cpi, ocr, inflation, monetary policy, rbnz

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