PRESS RELEASE
FOR IMMEDIATE RELEASE
Finance
Reserve Bank Heads Banking Cartel
"State interference in the financial affairs of New Zealanders has reached a disturbing new low point," said a disgusted
Greg Balle, Libertarianz Finance Spokesman today. "Reserve Bank Governor Bollard has allegedly orchestrated a 0.5% home
loan rate increase in closed door negotiations with the major banks."
"This brazen cartel-like behaviour seems to be welcomed by the governing Labour party while all other political parties
have kept silent on the questionable legality of this price fixing. Where's the outrage?" Mr Balle asks. "While
seemingly simultaneous petrol price rises bring about yelpings from all quarters, a state orchestrated rise of around
0.5% on home loans seems to go by without comment."
"There is no law that allows the Reserve Bank to coordinate commercial banks to target home mortgage holders for special
financial pain," Mr Balle noted. "For the Reserve Bank to talk directly to, and act in concert with, the commercial
banks has clearly taken it well beyond it's lawful mandate to keep prices stable via the OCR."
"The role of the Reserve Bank in this possibly fraudulent activity calls into question the existence of a Reserve Bank
at all, now that the willingness to abuse its state-given powers has been demonstrated."
"Libertarianz policy is to abolish the Reserve Bank and its monopoly to produce fiat money. The discipline of a free
market monetary system would deliver stable prices and a vastly more flexible banking environment," concluded Mr Balle.
"Without a centrally-planned monetary system and a one-size-fits-all interest rate., New Zealand could stop repeating
the tragic boom-bust cycle."
ENDS