The Greens have responded to today's RBNZ decision to hold the OCR at 2.75%, noting RBNZ's own acknowledgment that high inflation is being driven by our economy's exposure to fossil fuels, and the economic uncertainty of being at the whim of international commodity prices.
"The Reserve Bank know that higher mortgage rates can't re-open the Strait of Hormuz. Only a responsible government can reduce our exposure to imported fossil fuel inflation. Luxon's Government has done the opposite, leaving our country in immense economic uncertainty," says Green Party Co-leader Chlöe Swarbrick.
"New Zealanders deserve a Government who will put its hands on the wheel of the economy and drive us towards real prosperity. That means a plan for and investment in electrification, creating jobs and reducing our exposure to fossil fuel inflation."
"Luxon and Willis have instead been either too lazy or cowardly to tackle these structural issues, just hoping they go away and banking our economy on the luck of international commodity prices. As RBNZ pointed out again today, that's not a real plan – the winds could change at any time."
"The current Government has left every household more exposed to the next price shock. After binning an Energy Strategy, they're trying to pour taxpayer money into an LNG import terminal that would lock in reliance on imported fuel and subsequent price shocks."
"The Greens have shown that investment in clean, home-grown power, good public transport and rail options lowers household bills, cuts climate-changing emissions, and also helps to protect us all from imported fossil fuel inflation.”
"We are also the only party with a serious economic development plan, supporting research, innovation and critical diversification of our economy, in order to create new jobs and build real resilience," says Swarbrick.