Government must slash waste after OCR cut

Responding to the Reserve Bank of New Zealand’s decision to reduce the Official Cash Rate (OCR) to 5.25%, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:

“Adrian Orr is betting that the next inflation announcement will see inflation within the target band of 1-3 percent, and the Government must act quickly to cut wasteful spending to ensure that bet pays off.

“Today’s announcement will bring a sigh of relief to homeowners, but if inflation remains outside the target band this will simply drag out the pain of the cost-of-living crisis.

“If Adrian Orr isn’t going to regret his decision, slashing government waste needs to be the name of the game. With public sector wage costs still growing at twice the rate of those in the private sector, Nicola Willis isn’t short of targets.”