Lifting national savings rate best way to drive down kiwi, RBNZ’s McDermott says

Thu, 21 Nov 2013

By Paul McBeth Nov. 22 (BusinessDesk) - Reserve Bank assistant governor John McDermott says lifting the country’s savings rate will help reduce New Zealand’s reliance on foreign funding and ultimately drive down an over-valued kiwi dollar. The local currency is overvalued in both nominal and real terms, which is hindering the export sector’s profitability and general business strategies, and an important issue in driving its strength has been the persistent gap between savings and investment, McDermott told rural lobby group Federated Farmer...

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