17 October 2008

Cut Interest Rates Now Says Peters

The Reserve Bank should cut interest rates dramatically to prevent serious social effects from the country falling into a deep slump, says New Zealand First Leader Rt Hon Winston Peters.

Mr Peters said that the bank is sitting on its hands while companies collapse, jobs are lost and the equity disappears from family homes.

“Other countries are slashing interest rates and doing everything they can to stay afloat while in New Zealand the Reserve Bank is taking a finger in the wind approach.

“The Reserve Bank must not operate at the pace of a slow-moving snail. It must cut the OCR by at least one and a half percentage points now to halt the slide or there will be massive financial fallout over the next few months.

“There are thousands of small business owners in the country who have put their homes and businesses on the line and the Reserve Bank is blatantly ignoring their plight.

“The jobs of thousands of other New Zealanders are also at stake here while highly paid Reserve Bank officials gaze into computer screens.

“It's time for action – not dreaming,” said Mr Peters.

ENDS

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