OECD could not be clearer
Finance Minister Michael Cullen has welcomed the latest OECD Economic Outlook on the New Zealand economy saying it
brought a “refreshing dose of reality” into the tax debate.
“The OECD could not be clearer. Any additional fiscal stimulus beyond that already planned could put the projected soft
landing at risk and would need to be offset by higher interest rates in order to bring the economy back onto a
sustainable growth path.
“Not only does this reinforce my repeated warnings that tax cuts will mean higher mortgage and interest rate costs but
it is in language that even Don Brash should be able to understand and from an authority which the National and Act
parties cannot ignore,” Dr Cullen said.