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Media Release
09 September 2004

Growing Interest Rates Strangling Economy

Rt Hon Winston Peters says the Reserve Bank’s continually rising interest rates are totally unnecessary and will strangle the economy.

The bank has just increased benchmark interest rates from 6 percent to 6.25 percent, after increasing its rates in July from 5.75 percent to 6 percent.

“New Zealand has the highest bank rate in the developed world.

“Dr Cullen’s claims that the Official Cash Rate increase reflected strong economic growth for the country are hard to accept when so much money is being swallowed by overseas investors,” said Mr Peters.

“Exporters, businesspeople and young New Zealanders will be hit hard by this latest increase.

“The Government needs to end its obsession with inflation, and concentrate on making life easier for people with mortgages and for thousands of businesses around the country,” concluded Mr Peters.

ENDS

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