“Reckless and irresponsible Robertson just cost a family with a half-million mortgage $2,500 over the next two years,” says ACT Leader David Seymour.

“As the Reserve Bank says, fiscal pressure will drop away eventually but not now. In the meantime, the ASB is straight out the gate with increased floating rates and other banks are sure to follow.

“The Reserve Bank admits to being surprised at the increased government spending. Even if you’re lucky enough to get the goodies from last week’s budget, any benefits will be eaten up by inflation and interest rate increases in no time. If you didn’t get the goodies, it’s higher prices and higher government debt for you.

“Today’s 0.25 percent increase in the Official Cash Rate is going to hit Kiwis hard, and Grant Robertson is to blame. His inability or unwillingness to find savings to offset his increases in spending is going to hurt the average Kiwi far more than they will benefit from his budget largesse.”

“This latest increase in interest rates will go on mortgages, rents, business loans and rates, as Councils look to offset increases in their borrowing costs. We’ll see the impact in more people losing their homes, higher grocery prices, further falls in the housing market and in jobs, as employers look to cut back to save costs.

“The Reserve Bank has said that “The OCR will need to remain at a restrictive level for the foreseeable future” and that “Core inflation pressures will remain until capacity constraints ease further.” This points to more pain for longer for hard-pressed Kiwis.

"For a family with a half million-dollar mortgage, a 0.25 per cent interest rate hike will cost them $24 a week, or $1,250 a year. Savings from free prescription charges – which were capped at $100 a year – will be gobbled up in less than a month.

“This OCR increase, and the impact it will have on the wider economy, will undermine all the benefits of last weeks Government giveaway. For the vast majority of Kiwis it’s just inflation all the way, with no end in sight."

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