Interest Rise Will Cripple Exporters

Rt Hon Winston Peters today warned that the Reserve Bank’s interest rate hike will lead to a higher Kiwi dollar and further erode the position of local exporters on world markets.

The Reserve Bank lifted the Official Cash Rate from five percent to 5.25 percent.

“The pressures leading to the interest rate rise are domestic and reflect a booming consumer driven internal economy and a gloomy overseas trade position. Today’s move by the Reserve Bank will simply exacerbate the situation.

“Dr Cullen will be lucky if he can stop the bubble bursting before the next election,” said Mr Peters.

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