Responding to the Reserve Bank of New Zealand’s decision to hold the Official Cash Rate (OCR) at 5.5%, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:

“Kiwi families are struggling, but with the OCR looking likely to climb even higher at the next review, things may get a whole lot worse. The Reserve Bank will have to continue hammering mortgage owners with sky-high interest rates to try and undo the inflation caused by governments' inability to rein in wasteful spending.

“Inflation has been well outside of the target range for 32 months. Until the Government gets serious about cutting back the bureaucratic bloat, Kiwis will be left drowning in the deadly combo of high inflation and high interest rates.

“Both Labour and National have proved themselves incapable of making the tough calls and slashing wasteful public spending. Wellington bureaucrats continue to see their wage growth far outstrip wages in the private sector, and now the chickens are coming home to roost.”

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