Wednesday, 24 February 2021

Reserve Bank bets against the economy

“Reserve Bank Governor Adrian Orr clearly doesn’t share this Government’s confidence in the economy,” says ACT Leader David Seymour.

“By announcing today that he will maintain the current stimulatory level of monetary settings the Governor is signalling there is not enough underlying strength in the economy to ease off printing money.

“He’s going to keep his pedal to the metal, despite admitting the impact this is having on inflated house prices, leading to increased inequality.

“The Monetary Policy Statement was also an indictment on the Government’s response to COVID-19, noting that economic uncertainty would be ‘determined in large part by any future health-related social restrictions,’ read lockdowns.

“If the Government had adopted a culture of continuous improvement at the border, in managed isolation and through better use of technology responding to the virus this economic uncertainty wouldn’t be such a factor.

“In fact, if the Government listened to ACT a bit more and adopted its proven policies, the Reserve Bank wouldn’t feel it necessary to print money at such a rate, which is increasing New Zealand’s debt position by the day.”