New Zealand’s economy is a bright spot in a difficult global environment, growing faster than other advanced economies while interest rates rise overseas, National’s Finance and Economic Growth spokesperson Nicola Willis says.
“Overnight the Bank of England raised its interest rate to 4 per cent, its first increase in more than three years. That follows the Reserve Bank of Australia lifting its cash rate to 4.85 per cent this week, marking its fifth rise this year and the highest level since 2008.
“In comparison, New Zealand’s interest rate is 2.75 per cent – well below the UK and Australia, and half what it was under the previous Labour Government.
“That’s no accident. National’s disciplined spending and economic management has helped bring the OCR down from the 5.5 per cent Labour left behind.
“A family with a $500,000 mortgage is about $250 a fortnight, or almost $6600 a year, better off than it would have been three years ago under Labour.
“By stopping wasteful spending and getting the books back in order, the National-led Government has eased pressure on inflation and interest rates, while delivering tax relief so Kiwis keep more of what they earn.
“The global environment is volatile and the situation in the Middle East in particular is putting pressure on economies around the world. But while our government can’t control international wars or oil prices, we can control how we respond.
“The choices National has made in government means that New Zealand is weathering the global storm better than others.
“Yesterday’s government financial statements show our deficit is $1.3 billion smaller than forecast. Our economy is growing faster than Australia, the UK and the US. Treasury expects 220,000 new jobs over the next four years, with wages rising faster than prices. And we’re on track to return to surplus and start paying down debt.
“But these forecasts all depend on New Zealand sticking with National’s plan, and Labour would undo all of it. Its reckless spending last time saw inflation hit 7.3 per cent, the OCR rise 12 times in a row, and mortgage rates skyrocket.
“This time, it would be worse. A Labour coalition, with Chloe Swarbrick as Finance Minister, would spend recklessly, borrow more and hit Kiwis with nine new taxes – the same recipe that is driving up interest rates and slowing growth overseas.
“New Zealanders have worked too hard to go backwards now. Don’t let Labour undo the progress we’ve made together.
“Kiwis have less than two days left to choose the next government. If you want a National Government to keep delivering on our plan, don’t leave it to chance – you need to get out and vote for it today.
“Stick with the plan that’s working and party vote National.”
