Call for cash rate cut

The New Zealand Manufacturers and Exporters Association is calling on the Reserve Bank to act now and cut the official cash rate (OCR) by 50 basis points to take pressure off exporters.

The central bank next reviews the rate, which it kept at 2.5 per cent last week, in its Monetary Policy Statement in September.

Association chief executive John Walley said financial conditions had worsened since last week and some economists are predicting that the dollar will get to US70c. Walley said immediate action was needed to alleviate the strain on exporters.