OCR hike demonstrates need to rein in Government spending

Commenting on the Reserve Bank’s decision to increase the Official Cash Rate (OCR) by a further 25 basis points, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Continuing high levels of inflation have clearly forced the Reserve Bank to hike up interest rates even more. This means that families will not only have to bear the brunt of that high inflation, but higher interest rates will hit those renewing their mortgages soon too.

“The Government continually talks about tackling the cost of living crisis, but fails to recognize that it is partly responsible. Grant Robertson’s decision to increase spending over the next four years in his budget last week while forecast tax revenues have declined will simply add fuel to the inflation fire. If Chris Hipkins means what he says, he needs to rein in his Government’s spending.”