Lower N.Z. dollar and higher prices forecast
PA Wellington, Prices will rise 9 per cent and the New Zealand dollar will depreciate 5 or 6 per cent in the year to September, 1987, Ministry of Agriculture and Fisheries economists have forecast. Interest rates should be 16 or 18 per cent for term loans, they predicted. The present rate is 22’ to 24 per cent.
“Strong downside movement in interest rates in the year ending September 1987 is believed unlikely,” said the ministry’s economics division. Rural Bank loans subject to annual reviews will be one percentage point higher. Meat schedules will increase 10 to 15 per cent, the advisers said, j, and wool prices will rife' 10 per cent.
Wheat returns are expected to decline 15 to 20 per cerjt because of world oversupply, deregulation of the wheat industry in New Zealand and the trade policies of the United States and the European Economic Community.
Barley prices are also expected to drop 15 to 20 per cent, for the same reasons, the forecast said.
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Press, 8 July 1986, Page 35
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173Lower N.Z. dollar and higher prices forecast Press, 8 July 1986, Page 35
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