KEY POINTS:
The New Zealand Manufacturers and Exporters Association (NZMEA) today called for a 200-basis point cut in the Official Cash Rate (OCR).
The Reserve Bank announces any change in the OCR at its Monetary Policy Statement next Thursday. Economists are forecasting a 100 to 150-basis point cut in the rate, which is currently 6.5 per cent.
"Aggressive cuts from other central banks and global government action highlight worsening economic conditions and justify a 200-basis point cut to the OCR," NZMEA chief executive John Walley said.
"New Zealand still has one of the highest interest rates in the world and this must change if we are to have a hope of addressing our debt mountain."
The Bank of England has dropped its rate by 150 points to 3 per cent and the Reserve Bank of Australia has cut its rates to 5.25 per cent.
"Lower interest and exchange rates are needed to stimulate an export led recovery; the sooner the Reserve Bank delivers them, the sooner we can see the recovery begin," he said.
- NZPA
