Today’s decision to increase the Official Cash Rate by 50 basis points marks ten consecutive rate hikes in a row, underlying just how entrenched inflation has become, National’s Finance spokesperson Nicola Willis says.

“Interest rates often move up and down, but ten rate hikes in a row is unprecedented – smashing the previous record of five consecutive hikes under the last Labour Government.

“The pace and scale of interest rate hikes show just how embedded inflation has become in New Zealand. With inflation falling rapidly in many countries overseas, forecasts released today suggest inflation will remain high in New Zealand through the rest of the year.

“The latest data shows inflation in New Zealand is higher today than in the United States and Canada – despite inflation peaking higher in those countries. With international factors receding, domestic pressure like rampant Government spending and broken immigration rules are keeping inflation in New Zealand stubbornly high.

“Today’s rate hike will be deeply concerning for Kiwis already struggling with the cost of living. With wages struggling to keep up with prices, rapidly climbing mortgage costs will leave many families falling further and further behind.

“Half of the mortgages in New Zealand will come up for refixing in the next 12 months. Many already stretched households will now have to find hundreds of extra dollars a week to meet their payments.

“We might have a different Prime Minister, but after a month in the job, we have the same failed approach on the economy. More spending, higher taxes, and a barrage of new costs and regulations on business.

“New Zealand needs careful economic management and fiscal responsibility to get us through this difficult period.

“National has a plan. We would rein in wasteful spending, stop adding new costs and taxes, refocus the Reserve Bank on price stability, let Kiwis keep more of what they earn, and remove bottlenecks in the economy like Labour’s overly restrictive immigration settings.”

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