The New Zealand Manufacturers and Exporters Association (NZMEA) has taken umbrage at comments made last week by Reserve Bank deputy governor Grant Spencer, that exporters have adjusted to the New Zealand dollar being so high.
Mr Spencer told a Hong Kong audience that the central bank intends to continue raising interest rates.
NZMEA chief executive John Walley says the Reserve Bank's policy will discourage investment.
"The problem is we have people who sit in the domestic economy who cry crocodile tears for people in the tradable sector and now we have the Reserve Bank openly admitting that their intention is to deflate tradable in order to deal with inflation in the domestic economy."
Mr Walley says that's a clear signal for anybody who invests in the tradable sector to stop doing so.
He says there is an argument that those in the tradable sector are tolerating the high dollar, but generally they are not investing in the sector.