Interest rates, inflation likely to stay low - English
Interest rates and inflation are likely to stay at low levels for "some time" Finance Minister Bill English says.
Interest rates and inflation are likely to stay at low levels for "some time" Finance Minister Bill English says.
He was upbeat about the economic situation yesterday, after the latest statistics showed the country had avoided a double-dip recession.
Gross Domestic Product (GDP) rose 0.2 percent in the December quarter following a decline of 0.2 percent in the three months to September.
Two successive quarters of negative growth would have meant that technically the economy was in recession.
"Most commentators and forecasters agree that growth is likely to accelerate over the next couple of years," he told Parliament.
"It will be driven by a combination of lower than expected interest rates, strong commodity prices, continued Asian growth for our export markets, quake rebuilding and the Rugby World Cup."
Mr English said the forecasts were for growth to reach 4 percent or 5 percent during 2012 and 2013.
Asked about the implications of the latest GDP data, he said he didn't think it indicated any particular change.
"Both interest rates and inflation are likely to stay low for some time, reflecting the fact that the economy has been pretty flat and there is plenty of spare capacity," he said.
Labour's finance spokesman, David Cunliffe, said the figures showed the economy was going nowhere.
"Bill English is presiding over an old-fashioned slump and clearly has no idea what to do about it," he said.
NZPA and NBR staff
Fri, 25 Mar 2011
Fri, 25 Mar 2011
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Interest rates, inflation likely to stay low - English
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