“The Monetary Policy Committee has made a sensible decision to keep the OCR at one per cent”, according to ACT Leader David Seymour.
“After cuts to the OCR in May and Augus, and with historically low interest rates, a further reduction would have created fresh uncertainty about the direction of the New Zealand economy.
“The economy requires sound, stable monetary policy which isn’t helped by sharp changes in direction by the Reserve Bank. This is especially so given the uncertainty being created by the Labour Government as it lurches from one policy failure to the next.
“Monetary policy can only maintain price stability. Ultimately, it is sound fiscal policy from central government that will help boost productivity and living standards. That means low, flat taxes and less red tape which are reflective of the values of an ambitious country.”