Bollard leaves upbeat message

JAMES WEIR
Last updated 05:00 25/09/2012

Relevant offers

Money

Ethical shopping - more consumers are driving change The Japanese 'rent men' who are paid just to listen One of the world's largest boombox collections goes to auction in Dunedin The surprising drop in credit card debt, and the reasons behind it KiwiSaver market becomes more concentrated, but returns remain positive Businessman perplexed by 25c Inland Revenue bill Ray White signs deal with Lianjia as it launches into China House prices could fall 11 per cent by late 2019, as building catches up: Infometrics Swamp kauri case in Auckland High Court Rich people move to New Zealand for safety

The Reserve Bank sees "more positive signs ahead” despite uncertainty in the Canterbury rebuild, a slow United States recovery and the simmering eurozone debt crisis, governor Alan Bollard says.

On the eve of his departure after a decade leading the Reserve Bank, Bollard said he had had a “turbulent but hugely rewarding” decade as governor and chief executive.

Graeme Wheeler will take over tomorrow.

In the Reserve Bank's annual report issued yesterday, Bollard said the recovery in New Zealand had been “slower than we would have liked”, with trading partners affected by Europe's debt crisis and bank funding enduring “fragile periods”.

A slow recovery in the United States and the eurozone crisis had cast a shadow over world growth following the global financial crisis.

The Bank had held the official cash rate unchanged at 2.5 per cent for a record 12 reviews, the governor said in the annual report.

The Canterbury recovery would eventually provide a “significant boost to nationwide activity for an extended period”.

Bollard said there were “more positive signs ahead”.

Commodity prices had softened but remained reasonably strong, and important markets in Asia were “reasonably robust”.

“We have just ended an excellent farm season,” he said.

Banks had enough capital, funding and a willingness to finance more activity with interest rates at historic lows.

However, Bollard said it was important New Zealand was able to withstand shocks.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content