OCR Cuts Not a Plan for Growth

Responding to the Reserve Bank’s decision today to reduce the Official Cash Rate (OCR) by 50 basis points, Taxpayers’ Union spokesman James Ross said:

“When the only plan for growth seems to be praying for OCR cuts, the Minister of Finance must be thanking her lucky stars for another one.”

“The economy shrank dramatically in quarter two and will likely shrink again in quarter three. Skyrocketing council rate increases will only push inflation higher and will dampen the Reserve Bank’s enthusiasm for further OCR cuts.”

“Relying on monetary policy alone to stimulate growth is not enough - the Government’s fiscal stance needs to dramatically change. Minister Willis simply has to control and reduce wasteful and excessive government expenditure.”