Tag: Reserve Bank

Pre-Budget Speech to Business New Zealand event

Speech – New Zealand Government Budget 2016 Pre-Budget Speech to Business New Zealand event Wellington Wednesday, 13 April 2016 Its good to be back here for my annual pre-Budget speech and I want to thank Business New Zealand for hosting me once again. This years Budget will …Budget 2016 Pre-Budget Speech to Business New Zealand event Wellington Wednesday, 13 April 2016 It’s good to be back here for my annual pre-Budget speech and I want to thank Business New Zealand for hosting me once again. This year’s Budget will be delivered against a backdrop of a growing economy, supported by strong levels of tourism and migration, a large pipeline of construction projects and low interest rates. Notwithstanding challenges in the dairy industry, most New Zealand forecasters are predicting growth of around 3 per cent on average over the next few years. That’s a good position for the country to be in. In fact, over the last five years New Zealand has had one of the fastest growth rates in the OECD. However, nothing is guaranteed. There are always risks, and at the moment these revolve around issues like the ability of China to smoothly negotiate its economic challenges. On the other hand, the economy could do better than forecast. That’s why the Government takes a medium-term approach to fiscal policy, looking through ups and downs and focusing on the...

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Gordon Campbell on govt’s impotence towards banks, and Iran

Column – Gordon Campbell O ne of the defining features of this governments political style is how often Prime Minister John Key chooses to sound like a mere observer of political events. The public may think that they elected him to lead, and to be the captain on the … Gordon Campbell on the government’s impotence towards the banks, and Iran One of the defining features of this government’s political style is how often Prime Minister John Key chooses to sound like a mere observer of political events. The public may think that they elected him to lead, and to be the captain on the field but – time and again – he seems far more comfortable in commenting from the sidelines. The banks’ refusal to pass on the RBNZ’s interest rate cuts? They’re charging 20% interest on credit cards when interest rates are barely flickering above 2%? They’re pillaging New Zealand to the tune of $4.59 billion a year in profits? They’re making New Zealanders pay through the nose for the banks’ own increased costs of international borrowing? Jeepers, that’s simply how the system works. They charge: you pay. Oh, and Labour wants to do something about it – by engaging critically with the banks and/or passing legislation to ensure they pass on interest rate reductions to their customers? “They just don’t understand how the banks operate,” Key...

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Gordon Campbell on the Aussie banks

Column – Gordon Campbell If the New Zealand economy was a tennis player, it would be Maria Sharapova a player reportedly reliant on artificial stimulants, and corporate endorsements. In similar vein, our economy is seemingly dependent on artificial boosts to activity … Gordon Campbell on the Aussie banks, and patriotic death porn about the flag If the New Zealand economy was a tennis player, it would be Maria Sharapova – a player reportedly reliant on artificial stimulants, and corporate endorsements. In similar vein, our economy is seemingly dependent on artificial boosts to activity from (a) construction, driven by the Christchurch earthquake and the Auckland housing bubble (b) tourism, driven by our declining dollar and (c) a series of RBNZ interest rate cuts. None of which is a sustainable path to growth. Quite the contrary: the productive side of the economy remains in a depressed, deflated state. Yet on cue the bank economists continue to fulfil their rent-a-quote role by claiming that our GDP growth is still looking fine and is better than most; and so it is, yet only in a Sharapova sense. Sure, one can readily understand why bank economists would want to sing the praises of government policy settings that vastly enrich their employers. Last year, the four major banks raked off a massive $4.59 billion in profits from New Zealanders, thereby exceeding the rates of return...

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TPP central banks to refrain from currency manipulation

Article – BusinessDesk Nov. 6 (BusinessDesk) – The Reserve Bank of New Zealand and its 11 counterparts in the Trans-Pacific Partnership trade and investment pact have agreed to avoid unfair currency manipulation as part of a regionwide push for greater cooperation, adopting … TPP central banks to refrain from currency manipulation By Paul McBeth Nov. 6 (BusinessDesk) – The Reserve Bank of New Zealand and its 11 counterparts in the Trans-Pacific Partnership trade and investment pact have agreed to avoid unfair currency manipulation as part of a regionwide push for greater cooperation, adopting an initiative pushed by the US Treasury. In a joint statement, central bank governor Graeme Wheeler and Treasury secretary Gabriel Makhlouf welcomed a declaration by the 12 monetary authorities, whose principal objective was to avoid unfair currency practices before passing legislation empowering the TPP. The declaration confirms each country’s monetary authority is bound under International Monetary Fund articles to avoid exchange rate manipulation or the monetary system to prevent effective balance of payments adjustments or countries from gaining an unfair comparative advantage. It will also require each central bank to disclose currency and trade flows, and opens up consultations between the authorities. “These commitments are consistent with New Zealand’s policy settings and line up with the commitments New Zealand has made as a member of the International Monetary Fund,” Wheeler and Makhlouf said. “New Zealand’s sound...

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Joint statement on Declaration by TPP Policy Authorities

Press Release – Reserve Bank Gabriel Makhlouf, Secretary to the Treasury and Graeme Wheeler, Governor of the Reserve Bank of New Zealand today welcomed the completion of a Declaration that will strengthen cooperation between the macroeconomic authorities in Trans Pacific Partnership …6 November 2015 Joint statement on Declaration by TPP Macroeconomic Policy Authorities Gabriel Makhlouf, Secretary to the Treasury and Graeme Wheeler, Governor of the Reserve Bank of New Zealand today welcomed the completion of a Declaration that will strengthen cooperation between the macroeconomic authorities in Trans Pacific Partnership (TPP) countries, including New Zealand. TPP parties, at the instigation of the United States Treasury, have been working on the Declaration. The United States Congress requires the US Administration to demonstrate progress on the principal negotiating objective of avoiding ‘unfair’ currency practices before passing legislation to enable TPP. The Declaration is an agreement between agencies within each TPP country that deals with macroeconomic policy. It does not create any binding legal political or obligations for New Zealand. Parties to the Declaration commit to maintaining exchange rate regimes that reflect economic fundamentals and refrain from competitive devaluation. These commitments are consistent with New Zealand’s policy settings and line up with the commitments New Zealand has made as a member of the International Monetary Fund. The Declaration will not restrict New Zealand’s ability to adjust our macroeconomic policy in future. More broadly...

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