14 November 2001 Media Statement

Low interest rates help to boost economic development

The lowest interest rates offered in living memory will help to boost economic development, and they are a tribute to the Government’s economic management, Alliance leader and Acting Prime Minister Jim Anderton says.

“Today’s interest rate cuts will help to promote further investment and will lead to more jobs and prosperity for New Zealanders.

“While the Government cannot claim all of the credit for the environment that has produced low interest rates, the Government’s policies have helped.

“Fifteen years of New Right Governments never produced interest rates this low. Governments used to use high interest rates and high unemployment to control the economy. Now interest rates and unemployment are much lower.

“New Zealand-owned banking services are forcing the overseas-owned banks to pass on cuts in wholesale interest rates. They used to hog any wholesale cuts for themselves. The benefit of retaining those gains in the New Zealand economy instead of repatriating them to overseas shareholders is already repaying the Government’s investment in the Kiwi bank,” Jim Anderton said.

ENDS

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