OCR Statement: Downplaying a sea of risks

The Reserve Bank is brushing aside multiple risks and uncertainties in the global economy, says New Zealand First Leader and Northland MP Rt Hon Winston Peters.

“In the final sentence in today’s Reserve Bank Monetary Policy Statement it states: ‘Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.’


“The reality is that, internationally, risks abound and deep trouble could emerge suddenly.  The bank is simply downplaying a sea of risks.


“The Reserve Bank has missed another opportunity to educate and inform the public of the precarious state of the global economy due to the prolonged and unprecedented era of low interest rates, deeply indebted nations and slow growth.  


“The international outlook calls for a balanced and common sense approach to economic policy, including a sensible immigration policy.


“In parlous times the National Government’s phony “feel good” approach to economic policy is courting disaster for New Zealand,” says Mr Peters.


“But expect the hype to increase this year.”