Rate pause helps exporters

Monday 1 November 2004

The New Zealand dollar fell sharply yesterday as Reserve Bank Governor Alan Bollard delivered some relief to exporters sweating as the currency headed close to seven-year highs this week.

By The Landlord

The currency fell about a cent against the Australian and United States dollars yesterday, ending the day at A92 cents and US69c. That was well down on the recent peaks of A94c and US70.3c but still high.

And there was more grim news on the trade front with a record $4 billion trade deficit announced by Statistics New Zealand for the September year. The September month deficit of $1 billion was worse than expected, with weak exports and higher imports.

Dr Bollard yesterday lifted the official cash rate a notch to 6.5 per cent, as widely expected, but surprised with a clear message that he has done enough to keep inflation in control.


That was a sharp turnaround from earlier statements from the Reserve Bank that rates would keep rising because the economy was strong, unemployment was low and inflation could get out of control next year.

Read More - Opens in a new window
Commenting is closed

Property News

Share your views on property investing

It's that time of the year where we run the NZ Property Investor's survey of investor. Take part and be in to win.

House Prices

Values pick up the pace

There’s a more upbeat feel to the property market and it’s obvious in this month’s QV data which has values firmly on the rise.

Commercial

Commercial disrupter proves popular

New commercial property disrupter, Jasper, has hit the ground running with their first investment offering achieving full subscription in just 36 hours.

Mortgages

LVRs kept on hold

The Reserve Bank has kept its LVR speed limits on hold amid fears low interest rates "could lead to a resurgence in higher-risk lending".

Site by PHP Developer