Labour To Blame For Interest Rate Hike

Thursday 29 July 2004

Rodney Hide - Press Releases - Economy

ACT New Zealand Leader Rodney Hide today said that Reserve Bank Governor Alan Bollard was right to point to the "strain on resource capacity" as the reason for why he has hiked interest rates.

"What Dr Bollard hasn't done is explain the reason for the strain.

"The problem is that the Labour Government has made it tough to supply labour, resources and capital to grow the economy. As a result, the economy is constrained and prices are rising. To halt the inflationary pressure, we now have high interest rates.

"The Government should attend to the supply-side of the economy by cutting taxes, slashing red tape and making it easier rather than harder to hire and fire staff.

"That would be good for our economy, great for our standard of living, and would ensure a more prosperous New Zealand," Mr Hide said.

ENDS

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