Responding to the Reserve Bank's higher-than-expected OCR hike, New Zealand Taxpayers' Union Campaigns Manager, Callum Purves, said:

“The latest OCR increase will compound the challenges those needing to renew their mortgages in the next few months will face. The NZ Institute of Economic Research’s latest Quarterly Survey of Business Opinion has also indicated that these rate hikes have dampened demand in the economy, which will be of concern to businesses.

"The Government’s high levels of spending – and the Reserve Bank’s money printing to fund it – have contributed to record high inflation rates, which have necessitated repeated interest rate increases. With the significant rebuilding costs that will be required in areas of the country devastated by the cyclone, it is all the more important to rein in wasteful spending.

“If the Government is serious about tackling the cost of living, Grant Robertson needs to slash unnecessary and inflationary expenditure when he announces his budget next month.”

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