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Government Policies Force Brash's Hand

17 April 2002

"Today's decision by Reserve Bank Governor Don Brash to lift the Official Cash Rate by 25 basis points to 5.25 per cent is due to growing concerns over rising inflationary pressures," says National's Finance spokesman David Carter.

Mr Carter says Dr Brash's move reinforces his earlier concerns about the capacity of the economy to grow without generating inflation.

"This interest rate increase is another reminder to the Government about the effects of its economic policy.

"Sound economic policy is about allowing the economy to grow at a faster rate without generating inflation."

Mr Carter says Government should be putting in place policies that encourage growth - not stifle it.

"National's economic framework, which was released this week, will lower barriers to doing business; reduce compliance costs, reward success and upskill the workforce.

"Our economic framework is a comprehensive plan to lift New Zealand's sustainable growth rate.

"The Government's spin and setting up a couple of committees just won't deliver," Mr Carter concluded.


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