No Place For Complacency
It is a truth universally acknowledged that the Reserve Bank’s OCR releases are masterpieces of misinformation, says New Zealand First Leader and MP For Northland, Rt Hon Winston Peters.
“Hence the Bank’s use of the term ‘strong population growth’ to describe what is actually record and unprecedented levels of immigration into New Zealand.
“The Bank is conflating ‘strong population growth’ with strong economic growth when in fact New Zealanders are worse off because of lower wages, higher unemployment and pressure on services.
“On the global economy we are assured, ‘major challenges remain’ What is happening is that the global economy is still stuck in low growth.
“The Bank’s statement fails to alert New Zealand house buyers that internationally the move away from the times of ultra-low interest rates has begun with the US Federal Reserve starting to raise rates.
“The Bank’s statement concludes with magisterial blandness; “Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.”
“In reality, with many property and share markets around the world highly inflated the global economy could be in for a rough ride as the era of cheap money ends. The Bank does not serve New Zealanders by glossing over those risks and feeding complacency,” says Mr Peters.