Media Statement For immediate release Thursday, 24 April, 2003

United Future welcomes interest rate cut

United Future finance spokesman Gordon Copeland today welcomed the Reserve Bank decision to cut the official cash rate by 25 base points.

"Kiwis still regard New Zealand interest rates as being at an historic low, but the reality is that our rates have been one percent above Australia's for months now, and way higher than comparable rates in Britain and the United States.

"This has placed New Zealand companies at a comparative disadvantage.

"For exporters that has been compounded by the reality that when we run a higher interest rate than is available overseas, we push up the kiwi dollar, hitting them with a double whammy," Mr Copeland, who has consistently called for an interest rate cut, said.

"The rate cut is, therefore, timely and provides some much needed relief.

"This is particularly important right now as the economy has clearly gone off the boil, and we have an electricity crisis and the Sars virus to deal with."

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