New Zealand central bank chief calls on taking advantage of Austrilian growth

WELLINGTON, Nov. 6 (Xinhua) -- New Zealand Reserve Bank Governor Alan Bollard has said that New Zealand should try to ride to prosperity on the back of Australian economic growth, Radio New Zealand reported on Friday.

Bollard believes this is a better bet than trying to match Australian incomes.

He made the comment on Thursday following a decision by the New Zealand government to push for economic equality with Australia by 2025.

A special task force was set up under the former National Party leader Don Brash and Finance Minister Bill English has reiterated the aim.

However, at a closed door meeting in Auckland on Thursday, Bollard appeared to pour doubt on the plan, saying rather than catching up with Australian incomes, New Zealand would do better to take advantage of Australian growth.

The Reserve Bank governor also issued a warning to money markets driving up the value of the New Zealand dollar.

Bollard said speculators who think the NZ dollar will continue to rise in tandem with the Australian dollar stand to lose money.

Bollard said the economic pick-up here is much more muted than Australia's, which is benefiting from strong demand from China.

The Reserve Bank of Australia has raised official interest rates twice so far this year.

New Zealand's have remained at a record low and Bollard last week said they would remain there until the second half of next year.