Uncertainty Continues to Dominate Reserve Bank’s OCR Decisions

Responding to this afternoon’s Official Cash Rate announcement, Taxpayers’ Union spokesperson Tory Relf said:

“With ongoing uncertainty around the Iran conflict’s impact on inflation, the Reserve Bank has rightly chosen to sit tight and hold the OCR at 2.25 percent as expected."

“But while the Reserve Bank can wait for the inflation picture to clear, the Government does not have the same luxury. Tomorrow, Nicola Willis' Budget must show credible spending restraint if it wants any believable path back to surplus."

“That means Ministers, not departmental chief executives, going line by line through spending and scrapping programmes that are wasteful, ineffective, or no longer needed. The Taxpayers’ Union’s Back to Black report gives them a ready-made place to start.”

The Taxpayers’ Union pre-Budget report, Back to Black, is available at https://www.taxpayers.org.nz/back_to_black