The Reserve Bank’s Monetary Policy Statement predicts a sluggish economy with higher inflation and more job losses.

“Just days after Nicola Willis slashed women's pay in order to deliver her so-called ‘Growth Budget’, growth is now predicted to slow,” Labour finance and economy spokesperson Barbara Edmonds said.

“The Reserve Bank cited low growth, higher inflation in the short term, and higher unemployment as key reasons why they cut rates today. Rate cuts are good for mortgage-holders, but there are some real alarm bells in the RBNZ’s statement.

“Specifically, it projected sluggish economic growth of less than 1% in 2025, and said that inflation will continue to rise in the short term.

“Most concerning, the Reserve Bank warned about a weakening labour market, with unemployment remaining above 5% and expected to climb further this year. That contradicts National’s promises of thousands of new jobs in their Budget. Thanks to their choices, more than 15,000 construction jobs have been lost.

“The Government claims to have delivered a ‘Growth Budget’ but the only growth we can see is growing unemployment, growing prices, and a growing pay gap between men and women.

“Instead of helping people through tough times, the Government has chosen to cut jobs and take money from women’s future pay, all so they can give it to tobacco, fossil fuel, and big tech companies.

“Labour would make different choices, investing in jobs, health, and homes to grow the economy and lift living standards for everyone,” Barbara Edmonds said.

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