John Key MP
National Party Leader

23 October 2008

Interest rate cut welcomed: More to be done

In welcoming today’s 1% OCR interest rate cut, National Party Leader John Key says there is much more to be done to increase confidence and get the economy growing.

“This move by the Reserve Bank is just the beginning.

“The need for a decision on a wholesale bank deposit scheme should now be front and centre to ensure the benefits of lower interest rates flow through to Kiwi mortgage-holders and small businesses.

“Confidence and a clear sense of direction within the finance sector will be crucially important to our economy in the weeks and months ahead.

“An important part of any wholesale bank guarantee is getting the pricing right. Our view is that it should not be a free ride for the banks; so that they are encouraged to move away from it when it is no longer required.

“In the wider economic sense, it is crucially important that the incoming government be focused on growth and productivity to lift New Zealand out of the recession more quickly.

“The combined effect of the October 1 tax package and National’s April 1 tax package will provide the necessary fiscal stimulus to the economy in the short term, and we will start to reincentivise Kiwis to get ahead through their own efforts.

“It is Kiwi workers, families and businesses that will ultimately lift us out of the recession and get New Zealand growing again. We must make sure that they are rewarded for their hard work with lower taxes.”

ENDS

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