The New Zealand Manufacturers and Exporters Association (NZMEA) is criticizing the Reserve Bank's decision to keep the Official Cash Rate (OCR) unchanged at 2.5%.

The association holds a viewpoint that the move had successfully postponed further action on New Zealand's economic recovery for six weeks until the next OCR announcement.

"The level of the dollar in particular, is not helping the sustainability of future growth, and brings with it additional economic risks," noted Reserve Bank Governor Dr Alan Bollard, while announcing the unchanged OCR yesterday.

"The forecast recovery is based on a further easing in financial conditions. If this easing does not occur, the forecast recovery could be put at risk. In these circumstances we would reassess policy settings," he continued.

"We take this to mean that if we do not see a fall in the currency the Reserve Bank will cut the OCR again. Our question is: why wait? Economic growth is being hindered by the exchange rate and wholesale interest rates and attempts to talk them down have clearly failed. Action is needed; we are losing export revenue every day these conditions continue," expressed NZMEA chief executive John Walley.

Walley said it was difficult to understand that why no substantive action was taken, when results from across the export sectors remained poor.

He added that it is because of the high dollar that this week's announcement of the imminent closure of the Prime Sawmill in Gisborne has also come to scene.