Agreed... higher rates would be like helping a limping man by shooting him in the other leg!
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Originally posted by Robin McCandless View PostOn the other hand...
higher interest rates mean a stronger dollar, which makes petrol cheaper, and makes exported commodities (such as milk) more affordable at home ass the global whole price drops (when converted to NZD).
So if you want cheaper fuel and milk, raise interest rates.You can find me at: Energise Web Design
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Liberal left Re your post:
Myopia? US and UK exporters? surely NZ has other markets? I read locally that Wales is looking to develop a market in Canada for sheep meat....betcha no one in NZ had even thought of Canada as a useful market. As for high NZ$ well the main problem is a low US dollar and thats going to be around for a lot longer. NZ is going to have to become world focused not US and UK focusedThe mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.
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BNZ says risk of out-of-hand inflation
HAMISH RUTHERFORD Last updated 05:00 19/07/2011
Bank of New Zealand economist, Stephen Toplis, who has been leading warnings about inflation for months, says the Reserve Bank has all the evidence it needs to raise interest rates next week.
Statistics New Zealand said yesterday that the consumer price index reached 5.3 per cent in the March year, the fastest increase since 1990.
Stripping out last year's increase in GST, inflation was 3.3 per cent, above the Reserve Bank's 1-3 per cent target band.
While inflation was only 0.2 per cent above economist forecasts, yesterday's figures caused a sharp increase in bets that the Reserve Bank will raise the official cash rate well before December 31.
Based on interest swap rates, the market gave a 70 per cent chance of an official cash rate rise in October, and a 30 per cent chance of an increase at the September meeting.
"There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx
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Inflation out of hand?
That's a worry if it's true.
The cure for inflation is to raise the OCR and cause a recession.
What?
We've just come out of a recession, have been treading water for 5 minutes and now we're heading back into another recession?
I hope the Reserve Bank has a more cautious approach than what some commentators are saying in the papers.
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Did NZ come out of the recession? I know thats what the stats say......but I suspect If one knows how those stats were calculated then perhaps comparing to the economic conditions pre Lehmans NZ never came out of recession. IE recession is calculated quarter by quarter...perhaps as time goes by the strong performance of the earlier economic times drop out of the equation and give a false impression of a recovery.
It would be interesting to see if that is indeed the caseThe mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.
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if gov wants to raise savings rates
as it has said it needs to do
then it needs to raise the ocr so banks can pay depositors a rate higher than inflation
it is far easier for most pensioners to send money to oz
than you emigrate therehave you defeated them?
your demons
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Originally posted by Robin McCandless View PostWe'll buy it with BORROWED money of course.... country should be awash with it once interest rates go upYou can find me at: Energise Web Design
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Originally posted by Austrokiwi View PostLiberal left Re your post:
Myopia? US and UK exporters? surely NZ has other markets? I read locally that Wales is looking to develop a market in Canada for sheep meat....betcha no one in NZ had even thought of Canada as a useful market. As for high NZ$ well the main problem is a low US dollar and thats going to be around for a lot longer. NZ is going to have to become world focused not US and UK focused
Recipes for NZ Lamb are available on http://www.nzlamb.ca/
Don't underestimate the NZ Agricultural Marketing effort.DFTBA
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Perhaps 60% of respondents are either ambivalent about, or would welcome an interest rate rise.
Kiwis struggling to meet credit payments
*40 per cent of people anticipate that a rise in interest rates will have a negative impact on their finances.
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'Time's up' for low floating mortgages
HAMISH RUTHERFORD Last updated 05:00 25/07/2011
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Homeowners on floating interest rates should quickly look to lock in fixed rates before prices move up in coming months, a leading economist warns.
Tony Alexander, chief economist at the Bank of New Zealand, said that during the past fortnight there had been clear signs that the economy was gathering speed.
Economic growth was rising faster than experts had predicted, and inflation had hit a 21-year high.
This meant interest rates were likely to increase sooner than expected in an effort by the Reserve Bank to stop inflation getting out of control.
"What this means for borrowers is that time has now run out for comfortably sitting floating, planning to fix before fixed rates rise," Mr Alexander said.
"Such rises are probably just around the corner, with some banks' fixed-borrowing costs up 0.3 per cent from just a fortnight ago. If I were a borrower ... planning to fix, then I would see high risk in waiting any longer."
Only a week ago, Mr Alexander said floating rates were likely to offer better value for several months.
"There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx
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