“Statistics out this week showing that exports have dropped $383 million and the manufacturing sector has declined 7.2 percent demonstrate that little if any economic rebalancing has occurred say the New Zealand Manufacturers and Exporters Association (NZMEA). An overpriced New Zealand dollar and incentives to invest in the domestic economy continue to thwart export growth.”
Dr Bollard might as well put up a white flag and surrender to the Banks, says Selwyn Pellett, spokesman for the Productive Economy Council.
Pellett says yesterday’s announcement by the Reserve Bank that it was not going to lower interest rates further was a sign of capitulation demonstrating Bollard’s inability to influence banks over short term interest rates. Bollard’s failure to lower the rate further highlights that the Reserve Bank and the New Zealand Government have no effective Monetary Policy, he suggests. read more »
“Mr Whitehead called for a broader based tax system, including capital gains, or property taxes, to encourage investment into productive activity.”