Sky-high interest rates show Kiwi families need Government to show some fiscal responsibility

Responding to the Reserve Bank of New Zealand’s decision to hold the Official Cash Rate (OCR) at 5.5%, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:

“High interest rates stifle growth and punish Kiwi families. They’re being punished for runaway inflation driven by reckless overspending by a previous Government which had no concern for the effects its policies would have on hardworking people.

“Inflation has now been outside the target range for 34 consecutive months. The last Government fuelled the fire with wasteful spending for far too long, and the time to start getting the books back in the black has long since past.

“Unless this Government stops dragging its feet and starts getting serious about trimming back the fat in Wellington, Kiwi families are going to be doing it tough under both high inflation and crippling interest rates for many months to come.”