The Green Party is calling on the Government to take responsibility to reduce inflation by taxing wealth, instead of leaving RBNZ to continue hiking the Official Cash Rate.

“Economists estimate over-reliance on unconventional monetary policy throughout COVID-19 resulted in a huge transfer of wealth to some of the richest in Aotearoa,” says Green Party revenue spokesperson, Chlöe Swarbrick.

“Now, conventional monetary policy tools are being used to bake in that inequality.

“Worse than that, RBNZ Governor Adrian Orr admitted in response to my questioning that these actions were intended to engineer a recession.

“Lower income New Zealanders not only bore the disproportionate cost of getting through the pandemic, but are now carrying the bill of supposed recovery.

“Let’s be very clear, these are political decisions.

“The Government’s refusal to use deflationary measures, such as excess profits taxes on banks historical profits, or wealth taxes on those who profited handsomely through the global pandemic, are choices. Their unwillingness to use those tools and leave it to RBNZ’s blunt instruments will cause unnecessary and disproportionate pain for lower income New Zealand households.

“If we taxed wealth, this money could then be used to support people to help make ends meet.

“Only the Greens have continued to fight for these common-sense, fair policy interventions. Business as usual wasn’t working before the pandemic, and it is in tatters now.

“We will keep fighting for action necessary to rebalance wealth, protect our climate and natural environment,” says Chlöe Swarbrick.

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