26 October 2004

Rising Interest Rates Have Got To Stop

Rt Hon Winston Peters is appealing to the Reserve Bank not to increase its interest rates this week. Mr Peters has said that the Reserve Bank’s continually rising interest rates are completely unnecessary and will strangle the economy.

“Last month the bank increased benchmark interest rates from 6 percent to 6.25 percent, after increasing its rates in July from 5.75 percent to 6 percent. There is strong speculation that they will once again lift interest rates this week,” said Mr Peters. “Should this occur, a further increase would see the Official Cash Rate rise from 5 percent to 6.5 percent over the last twelve months.

“With every increase another nail is added to the coffin for New Zealand exporters and businesspeople.

“Thanks to the Government’s obsession with inflation, New Zealand now has the highest interest rates in the developed world. “While the Government continues to boast about a strong economic boom, thousands of Kiwis are struggling to pay their mortgages and run businesses,” concluded Mr Peters.

ENDS

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