Migrant numbers tweaked to ease inflation pressures
5:00AM Friday July 06, 2007
By Claire Trevett
The Government is trimming the number of migrants over the next year, saying it will help reduce pressure on inflation and house prices.
Immigration Minister David Cunliffe has reduced the target number of migrants for 2007-08 to between 45,000 and 50,000 - down from a band of 47,000 to 50,000 the year before.
He said actual migrant numbers last year were about 47,000, at the lower end of the band, and further tightening was needed to help reduce pressure on inflation.
The cut follows repeated warnings from Reserve Bank Governor Alan Bollard blaming immigration as one of the factors fuelling inflation, partly by pushing up house prices because of the extra demand.
Robin Clements, chief economist with UBS, said the step would be of limited success because it did not address the other end of the problem, the numbers of people leaving.
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