“A likely 75 per cent basis point increase in the OCR shows that the Reserve Bank has lost control of the situation, but astonishingly, they’re going to take three months off. They should schedule another meeting for early January, you can’t say the situation is critical then put it on autopilot for three months,” says ACT Leader David Seymour.

“Not so long ago, the Reserve Bank complained that New Zealand’s inflation statistics are only published quarterly. They had a point, but over summer the Bank itself makes monetary policy decisions on quarterly time.

“The Monetary Policy Committee is supposed to keep inflation under 3 per cent. Currently it’s 4.2. That is hardly the kind of high performance that deserves a long break.

“The Monetary Policy Committee usually meets every six weeks. In the days of disappearing inflation, the decade leading up to COVID, a three-month break was fine. We now have a cost of living crisis and the Monetary Policy Committee needs to take it seriously, frequently.

“ACT is calling for the Monetary Policy to work right through, and hold a meeting in six weeks, in early January.  Given the pressure that inflation and rising interest rates are putting on households up and down New Zealand, the least that the Monetary Policy Committee could do is come back early from the beach. After all, its they who are missing their 1-3 per cent inflation target by 4.2 per cent right now.”

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David Seymour