Reserve Bank hike shows why Labour’s spending plans are dangerous

Responding to the Reserve Bank’s decision to raise the Official Cash Rate by 25 basis points to 2.75 percent, Taxpayers’ Union spokesperson Tory Relf said:

“Another OCR hike is a reminder that governments cannot spend their way to prosperity. Excessive government spending helped fuel inflation, and taxpayers are still paying the price through higher interest rates.”

“Labour’s plan to push core Crown spending to 33 percent of GDP would mean around $16 billion more spending in 2030/31 than Treasury currently forecasts. That is an extraordinary amount of extra money to take out of taxpayers’ pockets or borrow.”

“Chris Hipkins and Barbara Edmonds cannot promise a massive increase in spending while pretending there will be no massive increase in tax. If Labour wants to spend $16 billion more a year, it needs to tell New Zealanders exactly where the money is coming from.”