This afternoon, the Reserve Bank made another cut to the Official Cash Rate, from 5.25% down to 4.75%. ACT Leader David Seymour responds:

“Today’s rate cut is great news. Lower interest rates mean real relief for Kiwis with mortgages, also relieving pressure on rents, and freeing up spending cash to quench thirsty local businesses.

“However, on the Reserve Bank’s part, a 50 basis-point cut is a multi-billion dollar mea culpa, and the latest twist of a nauseating three-year fiscal and monetary roller coaster.

“Today’s cut bookends a series of excesses. The too-easy money of COVID times spiked house prices and inflation. Then, interest rates shot up, house prices crashed back down. Today, Kiwis are finally getting off a three-year fiscal and monetary rollercoaster, feeling nauseous for their troubles.

“Kiwis have done the responsible thing. Interest rates were also driven up by Labour’s COVID spending blowout. Households responded by making spending sacrifices – and changing the Government.

“Our efforts are paying off. Together, our prudent spending has seen inflation ease back and given the Reserve Bank room to cut interest rates. If we stay the course, we should expect further relief in the coming months.

“However, interest rates are still painfully high compared with pre-COVID times. ACT is determined to speed the path back to lower rates, lower living costs, and real economic growth.

“We must build on our progress in cutting the waste and red tape from Wellington. That is how we honour the efforts of households working to secure a prosperous future for themselves.”

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