Interest Rate Hike Labour's Fault

ACT New Zealand Leader Rodney Hide today blamed the Labour Government's refusal to cut taxes and reduce compliance costs as the main reasons for yet another hike in interest rates.

"The Government's failure to address the supply-side of our economy by cutting taxes, slashing red tape and making it easier to hire and fire staff, has made doing business in New Zealand an expensive exercise," Mr Hide said.

"These three factors make it tough to supply labour, resources and capital - all of which make for an upbeat economy. Instead, what we have is a constrained economy - resulting in higher prices.

"To halt the inflationary pressures brought on by Labour's economic mismanagement, the Reserve Bank has been forced to increase interest rates - it won't be the last.

"ACT offers a more positive solution to addressing rising prices: lower taxes, less red tape and more relaxed labour laws.

"That would grow our economy, improve everyone's standard of living, and ensure a freer and more prosperous New Zealand," Mr Hide said.

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