Grant Robertson should listen to the Governor of the Reserve Bank about the need to use his fiscal tools to help control inflation, says National’s finance spokesperson Nicola Willis.

Reserve Bank Governor Adrian Orr has said central banks grappling with inflation need support in the form of “more targeted effective fiscal policies” as he acknowledged New Zealand’s central bank is “not in a great place now” as it works to get inflation under control.

“The Finance Minister must heed this warning.

“It’s not credible for Grant Robertson to keep claiming inflation is a mysterious visitor from overseas over which he has no control.

“He must do his bit to remove inflationary pressure in the domestic economy: stop adding costs to business, quit wasteful spending & remove bottlenecks to productive growth.

“This is absolutely not the time to put fuel on the fire with the biggest Budget spending allowance in history, which he has foreshadowed for his May Budget.

“Grant Robertson should take the Reserve Bank Governor’s comments seriously and rein in his extravagant spending plans.

“The OECD and many bank economists have already warned against expansionary Government spending policies.

“The Reserve Bank’s plea for help should be the final straw.

“New Zealand is in the midst of a cost of living crisis and the Government needs to support efforts to bring things under control, not make things worse.”

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