The Reserve Bank should cut interest rates and do more to talk down the New Zealand dollar to a competitive level of less than US55 cents, according to Berl economist Ganesh Nana.
Wednesday, September 24th 2003, 4:21AM
by The Landlord
"It's getting worse and it's making serious inroads into the tradables sector prospects," Mr Nana said of the rising dollar.
The dollar was close to US60 cents today after a sharp rise last weekend – close to its five-year high in July. The currency is 50 per cent up from its level in April 2001.
Other economists see the dollar rising to about US64 cents, though the timing was uncertain – it could be next year or "in a month". Already struggling exporters could be "crippled" if the dollar moved up toward the 1996 peak of more than US70 cents.
