When the Reserve Bank of New Zealand raised the Official Cash Rate (OCR) to 2.75% last month, it signalled more rate hikes in the future.
The Northern Employers and Manufacturers Association, Alasdair Thompson, says the latest business opinion survey confirms the economic recovery has hit a plateau, and warns another OCR rise could cause it to go into reverse.
Westpac Bank chief economist Brendan O’Donovan says that thinking is wrong and moronic. What’s important for New Zealand is that Asian economies are still growing fast and commodity prices are at highs. However the chief economist for the consultancy BERL, Ganesh Nana, disputes there’s any real recovery in exports – with only wine and logs doing better than a year ago. Hear the debate on Radio New Zealand – click here.