10 Sep 2008

Farmers want change in monetary policy process

6:54 am on 10 September 2008

Federated Farmers is backing a call for the Reserve Bank to change the way it sets monetary policy.

The Manufacturers and Exporters Association says the Reserve Bank should be forced to take exchange rate stability into consideration when setting interest rates.

Wairarapa meat and fibre chairman Alan Stuart says there's been a 105% fluctation in the NZ - US exchange rate over the last six years and 70% in the Trade Weighted Index.

He says inflation is being controlled at the expense of exporters and it's time the Government stepped in and made the Reserve Bank honour its policy targets agreement.

Mr Stuart says a drop in the value of the New Zealand dollar to US64 cents could lift export lamb returns to between $100 - $120 for a 16kg carcass.