Today’s shock 50 point lift in the Official Cash Rate means far more pain for New Zealand families, National’s Finance spokesperson Nicola Willis says.

“Mortgage-holders up and down the country were holding their breath and hoping for some relief. Instead, they’ve been given another punch in the guts.

“This is the eleventh consecutive hike in the Official Cash Rate. Around half of New Zealand mortgage holders will be re-fixing their mortgages in the next six months, meaning many will see their interest rates double from 3 per cent or less to more than 6 per cent.

“The speed of this hike will leave many scrambling, trying to find hundreds of dollars more every fortnight just to stand still. Some will be unable to do that.

“Sadly, for too many Kiwis this will be the punch that sends them off the edge, into mortgage arrears, unwanted house sales and financial distress.

“Labour’s big-spending, big-taxing, anti-business approach to the economy has failed, forcing the Reserve Bank to lift interest rates, and everyday New Zealanders are paying the price.

“New Zealand is enduring a prolonged cost of living crisis, with inflation having persisted outside acceptable levels for nearly two years and expected to stay elevated for many more months to come.

“New Zealand’s inflation rate is higher than Australia’s, the USA’s and many other countries we like to compare ourselves with.

“Labour’s addiction to spending, restrictive immigration settings and the huge volume of money-printing and borrowing it oversaw during the Covid lockdowns has directly worsened the cost of living crisis.

“National will strengthen New Zealand’s economy, restoring careful fiscal management, backing productive businesses and reducing the pressure on inflation and interest rates.”

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