Reserve Bank forced to act because National won’t

The Reserve Bank was forced to cut the Official Cash Rate (OCR) today in a bid to drive down the high New Zealand dollar and address growing imbalances in the New Zealand economy, the Green Party said today.

The Reserve Bank cut the OCR today by 25 basis points to 2.0 per cent, with Governor Graeme Wheeler signalling further cuts were likely.

“The Reserve Bank has been forced to cut the OCR in an attempt to address growing imbalances in the New Zealand economy,” Green Party finance spokesperson Julie Anne Genter said.

“The Reserve Bank has had to show economic leadership because the National Government has failed to do so.

“The critical earning part of our economy — the export and import-competing sectors — are under significant pressure from the high New Zealand dollar.

“The real New Zealand economy is suffocating under National’s short-term, politically expedient approach. The Governor called house price inflation ‘excessive’ and raised the stakes of a major shock to the economy should house prices correct.

“National’s failure to stop housing speculation and build enough affordable homes is making the wider economy more vulnerable to damaging economic shocks.

“National are failing to run a productive, jobs-rich, and export-focused economy.

“Responsible measures like a comprehensive capital gains tax (excluding the family home) and restricting land sales to citizens and permanent residents would ease pressure on the exchange rate and show real economic leadership where there is currently silence,” Ms Genter said.

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