OCR Cut Won’t Fix Government’s Spending Problem

The Taxpayers’ Union says today’s 25 basis point cut to the OCR is no substitute for the Government tackling its reckless spending.

Taxpayers’ Union spokesperson, Tory Relf, said:

“This isn’t a normal downturn, it’s a prolonged recession. The Reserve Bank has done its bit, but the real problem is fiscal. Inflation is set to bounce back, and council rate hikes are still feeding through the system.”

“Nicola Willis keeps praying for growth while kicking the surplus can further down the road. Fitch may have reaffirmed our AA+ credit rating, but they made it clear debt is higher and consolidation has been delayed.”

“The Treasury has already shouted ‘fire’, yet the Minister refuses to act. Until the Government reins in its spending, no amount of OCR cuts will rescue the economy.”