Manufacturers Call for Deposit Insurance in New Zealand

Echoing some of the policy changes called for on this blog in recent weeks, the New Zealand Employers & Manufacturers Association (Northern) has called upon the Reserve Bank to do the following:

"While the recent tax cuts will help, the Reserve Bank now needs to:

* Cut the Official Cash Rate (OCR) by at least one percent;

* Ensure NZ banks have access to sufficient Reserve Bank credit to ensure responsible lending can continue;

* Reassure business, depositors and lenders that our banks are safe and fully able to keep on lending.

"The Government needs to assure depositors that, should it be required, it will guarantee them even though all our banks are rated amongst the top 26 in the world.

"Now is not the time to maintain and overly narrow focus on inflation. Restoring confidence to ensure the recession does not deepen must take priority."

Friday, 10 October 2008, 10:15 am
Press Release: Employers And Manufacturers Association