RBNZ - Time to stop talking, just do it
CTU economist Bill Rosenberg says the Reserve Bank acknowledges exchange rate too high - and that its time to stop talking. Just do it.
“We welcome the hold put on policy interest rates by the Reserve Bank today,” says Bill Rosenberg, “we also welcome the acknowledgement that the exchange rate is far too high. But it has been high for far too long, hurting exporters and jobs, and the time for talking has passed.”
“While a further cut in the OCR might help a little, the effect would be marginal. It is time to look at other possibilities such as a selective tax on capital flowing into the country or limiting overseas borrowing by the banks.”