Cut Rates, Cross Fingers – Interest Rate Cuts Are Not a Growth Plan

Responding to the Reserve Bank’s decision to cut the Official Cash Rate (OCR) by 25 basis points to 3.25 percent, Taxpayers’ Union Spokesman James Ross said:

“As expected, the Reserve Bank has cut interest rates. But it’s clear the Government is relying on these cuts to do the heavy lifting.”

“With no credible path back to surplus and a so-called ‘Growth Budget’ offering just one pro-growth policy, Nicola Willis seems content to try and outsource economic recovery to the Reserve Bank.”

“Growth is anaemic, yet the Government’s strategy amounts to crossing its fingers and hoping falling interest rates will do the job for them. That’s not leadership - it’s abdication.”

“Nicola Willis missed a golden opportunity to cut spending, boost growth, and chart a course back into the black. Kiwis can’t afford another five years of government-by-wishful-thinking.”