The PEC today came out in support of beleaguered Fisher and Paykel saying the company is yet another victim of the exposure to exchange rate fluctuation all exporters have endured since the current Monetary Policy was implemented.

“With a previously unlimited money supply fuelling property inflation and our monetary policy driving up interest rates and exchange rates, all non-primary exporters are forced to ask why they stay in New Zealand”, says PEC spokesman Selwyn Pellett. read more »

PEC spokesman Selywn Pellett outlines the rationale behind the Productive Economy Council on NZI Business.

From NZI Business

“The Productive Economy Council today said the government needs to take account of the fact that 80 per cent of mortgage holders are still stuck on inflated interest rates while the cost of money has plummeted.”

From the NZ Herald

The Productive Economy Council today reminds the government that 80 percent of mortgage holders are still stuck on inflated interest rates while the cost of money has plummeted. The PEC believes that this additional cash flow benefit could be going into the economy instead of repairing the balance sheets of our bankers. A rough calculation would suggest the benefit to the country is between $30 and $70 million a week* with the only obstacle being the inflated bank break fees.

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“Banks will continue to charge sky-high home loan break fees - often reaching tens of thousands - until there is a legal test case or intervention by Parliament, says the outgoing banking ombudsman, Liz Brown.”

From the NZ Herald