Higher OCR is the bill for Wellington’s spending habit

Responding to the Reserve Bank’s decision to raise the Official Cash Rate by 25 basis points to 2.50 percent, Taxpayers’ Union spokesperson Tory Relf said:

“Higher interest rates are what happens when Wellington refuses to stop spending.”

“The Reserve Bank is being forced to lean on mortgage holders and businesses because the Government has not done its bit on inflation.”

“Monetary policy is a blunt tool, especially when inflation is being driven by supply pressures. But every dollar of unnecessary government spending makes the Bank’s job harder and keeps pressure on interest rates.”

“Taxpayers should not be hit twice: first through wasteful spending, and then through higher mortgage and borrowing costs. The Government needs to cut actual spending, not just promise slower increases.”