With inflation at 5.9 per cent, today’s interest rate rise of 0.25 per cent is simply the Reserve Bank doing its job, National’s Finance spokesperson Simon Bridges says.

“It’s clear the economy is overheating, so Reserve Bank Governor Adrian Orr is right to continue removing stimulus.

“But by stubbornly refusing to follow suit by reining in his big spending plans, Grant Robertson is sending a clear message that he cares more about legacy-building vanity projects than he does about the cost of living crisis his excessive spending is creating for Kiwis.

“Through the pandemic Robertson has spent more than almost any other Finance Minister, as a proportion of GDP. In this overcooked economy, his spending just keeps adding fuel to the inflationary fire.

“With an upcoming splurge of $6 billion planned for Budget 2022, the biggest permanent new spending increase New Zealand has seen, he must show some discipline and rein it in.

“Back in 2020, Robertson stated that monetary and fiscal policy needed to work together to keep the economy afloat, which National supported. Now that the economy is overheating, he needs to take his own advice and stop pouring more fuel on the fire.

“The alternative is the Reserve Bank having to work even harder to fight the highest inflation in over 30 years. We already know there will be several more interest rate hikes, causing much economic pain for New Zealand.

“Don’t force them even higher, Grant – rein the big spending in.”

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