KEY POINTS:
New Zealand's official interest rate remains unchanged at 7.25 per cent, but Reserve Bank Governor Alan Bollard has again warned that higher rates could be on the way.
Did he make the right decision?
Send us your views
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Here is the latest selection of your views:
Jeremy
I believe that Bollard is correct to leave the OCR alone. However, his incessant comments that he wishes to control the price of houses is just nuts. Who appointed him Minister of House Prices? I see nothing wrong with allowing market forces to control what people will pay for houses. A more pressing monetary issue, is the level of foreign investment in NZ. Apparently dividends and profit payments to overseas parties is a major contributor to NZs huge overseas deficit. Why doesnt he comment on that instead of personal spending levels? For that matter, why doesnt the Government do anything about that?
Paul McMahon
There would have been little point in Bollard raising the OCR when inflation is being fuelled by NZers borrowing from overseas to buy investment properties they dont need. Increasing the OCR would only cause the NZ dollar to appreciate, reduce employment, and push the economy into recession. Surely there must be another way to control inflation than raising interest rates. After all, raising interest rates only takes money from the poor and gives it to the wealthy and financial institutions.
