OCR cut good for families, bad for Auckland housing

With unemployment rising and the economy going off on the wrong track, cutting the Official Cash Rate (OCR) was the right decision to help small and medium-sized businesses invest to create jobs and bring mortgage payments down for families, the Green Party says today.

With unemployment rising and the economy going off on the wrong track, cutting the Official Cash Rate (OCR) was the right decision to help small and medium-sized businesses invest to create jobs and bring mortgage payments down for families, the Green Party says today.

The Reserve Bank Governor today announced a 0.25% cut to the OCR bringing the new rate to 2.5%.

“The National Government’s management of the economy has them desperately pulling levers and pushing buttons but they’re failing New Zealanders. The decision by the Reserve Bank to cut the OCR was the right thing to do,” said Green Party Co-leader Metiria Turei.

“New Zealanders are doing it tough with unemployment rising and the economy slowing down. The OCR cut will help small businesses invest to create jobs and decrease payments for people with mortgages.

“However, a cut to the OCR will pour fuel on the fire in the Auckland property market. But the OCR should not be the tool used to control the housing market in Auckland.

“The National Government needs to step up and take real action to cool the housing market in Auckland, otherwise it will continue to be hard for first-home buyers to get their foot in the door.

“The Green Party wants the Government to use the tools we’ve been talking about for a long time, like a capital gains tax (excluding the family home), smart intensification along key public transport routes, and a massive state-led home-building programme, to control the Auckland housing market,” said Mrs Turei.

Latest Finance Announcements

Story

Housing plan a start, but much more needed to meet the scale of the crisis

The Government’s housing announcement is a very small start but it doesn’t go far enough to genuinely meet the scale of the crisis.
Read More

Story

Greens announce 4 point plan to stop runaway housing crisis

The Green Party is calling for bold, transformational measures to stop the accelerating housing crisis that is locking New Zealanders out of a stab...
Read More

Story

Tax data exposes gross inequity between the wealthiest and poorest New Zealanders

Government data today shows that the wealthiest New Zealanders aren’t paying their fair share of tax, whilst everyone else chips in, Green Party sp...
Read More

Story

Economic windfall should be funnelled straight back into communities: Green Party

Following an economic forecast that shows Aotearoa strongly rebounding from COVID-19, and Crown accounts looking much healthier than expected, the ...
Read More

Story

Green Party to abstain from tax changes that will worsen house crisis in absence of tax on assets

The Green Party will abstain from a bill that will make slight changes to income tax brackets.
Read More

Story

Green Party welcome Adrian Orr’s full and frank advice on tax

We welcome Adrian Orr signalling that he will provide advice to the Finance Minister on fiscal measures, include tax changes, to cool the housing m...
Read More