9 Sep 2011

Reserve Bank not so sure on legacy of World Cup

11:14 am on 9 September 2011

The Reserve Bank is at odds with the Government over prospects of large future pay-offs from the Rugby World Cup.

Tournament Minister Murray McCully says New Zealand stands to gain substantially from business generated from a better awareness of New Zealand because of the Cup.

But the Reserve Bank says it may not be possible to know whether there will be long term benefits.

It expects a boost to the economy, but cautions that this may not be as much as hoped.

Senior economics advisor Michael Reddell says international studies suggest New Zealand should not be too optimistic about a sustained effect.

The New Zealand Institute of Economic Research says predictions for large sports tournaments are usually overly optimistic.