Tag: Monetary Policy

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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Speech to the Auckland Chamber of Commerce

Speech – New Zealand Government Thank you Michael and the Auckland Chamber of Commerce, and Steve and Massey University, for inviting me back to this annual event.Hon Bill English Minister of Finance 25 February 2016 Speech to the Auckland Chamber of Commerce and Massey University Good afternoon. Thank you Michael and the Auckland Chamber of Commerce, and Steve and Massey University, for inviting me back to this annual event. It’s a pleasure to be here again. Today I want to take you through some of our initiatives through to 2017. I can tell you there is no letup in pace this term – we’ve got a busy policy programme, and there is much to do. I also want to share with you some of our longer term thinking, particularly with ongoing reform of urban planning and the Government’s finances. Economic Outlook But first I’d like to talk about the current economic outlook. There are positive signs despite international turbulence. The last decade has been challenging for New Zealand businesses. They’ve weathered the global financial crisis, Canterbury earthquakes, interest rates higher than the rest of the developed world, and a high New Zealand dollar. Initially the response was around resilience. Businesses and households tightened their belts and became more efficient. That was also the case for the Government. Spending was constrained to turn an $18.4 billion deficit in 2011 into...

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Post-cabinet: TPP, Family Violence and Solid Energy

Article – Megan Gattey Prime Minister John Key discussed the current situation on the TPP, Solid Energy and the upcoming discussion document on family violence in a post-cabinet press conference today.Post-cabinet: TPP, Family Violence and Solid Energy By Megan Gattey Photo: Francis Cook Prime Minister John Key discussed the current situation on the TPP, Solid Energy and the upcoming discussion document on family violence in a post-cabinet press conference today. The TPP agreement was unable to be concluded over the weekend, and Key said there were a few challenging issues still remaining. “There is a finite window where if we can’t complete the deal in that time, it becomes for difficult for the United States and others,” he said. The offer on dairy from the discussions were “not close enough for a deal to be concluded”, he said. “We want to get the best deal for New Zealand, but not at any cost.” Key said he was confident that the involved countries would reach an agreement that would be in the best interests of New Zealanders. “We won’t get rich selling to ourselves.” He said coming to an agreement would give New Zealand exporters and investors access to more than 8 million companies, and ultimately the TPP would create better opportunities and standard or living for New Zealanders. Justice Amy Adams will soon be announcing a discussion document about...

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The FIRE Economy: New Zealand’s Reckoning – By Jane Kelsey

Opinion – Professor Jane Kelsey The global economy imploded in 2008 and confirmed a stark reality. Entire nations and billions of people are captives of an unstable and amoral economic system powered by finance , insurance and real estate FIRE. [1] New Zealand included. Click to order a copy from the Publisher The FIRE Economy: New Zealand’s Reckoning By Jane Kelsey Introduction – An Extract The global economy imploded in 2008 and confirmed a stark reality. Entire nations and billions of people are captives of an unstable and amoral economic system powered by finance, insurance and real estate – FIRE. [1] New Zealand included. ‘The FIRE economy’ is a metaphor for the fundamental shift in global capitalism since the 1970s. Finance has replaced industry as the driver of wealth creation in affluent countries – a transformation known as financialisation. Neoliberal ideology, rules and institutions acted first as the midwife and then as the guardian of this new economic order. The Global Financial Crisis (GFC) showed the world’s richest countries, notably the US and the nations of Europe, that the globally integrated economy they had created, and from which they have prospered, could also bring them to their knees. Faith in the neoliberal ‘orthodoxy’ that shaped and sustained them seemed shattered. The fallout was fast and furious, and quickly spread to many other parts of the world. A cursory look...

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New Zealand Weekly Economic & Political Update

Press Release – iPredict The Official Cash Rate will be cut on 11 June and again by 10 December , according to the combined wisdom of the 8000+ registered traders on New Zealands predictions market, iPredict. Despite this, annual inflation is not expected to reach 2% until …New Zealand Weekly Economic & Political Update www.ipredict.co.nz TWO INTEREST RATE CUTS EXPECTED THIS YEAR The Official Cash Rate will be cut on 11 June and again by 10 December, according to the combined wisdom of the 8000+ registered traders on New Zealand’s predictions market, iPredict. Despite this, annual inflation is not expected to reach 2% until the September 2016 quarter at the earliest. The government’s new tax on capital gains appears to have reduced forecast house price inflation somewhat, but the average Auckland house price is still expected to increase from $809,200 in April to $814,337 in May, $818,475 in June and $829,560 in July. Kevin Hague is expected to be the next male co-leader of the Greens and National is expected to lead the next government with the support of NZ First, although there is now only an 11% probability John Key will still be prime minister by the end of 2017, with Paula Bennett favoured to replace him as National Party leader. New Zealand Politics: • John Key is expected to remain National leader until the end of 2016...

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