New Zealand’s interest rates are among the highest in the world and homeowners that are bearing the brunt of them should join Labour’s call for an Economic Upgrade, Labour Leader David Cunliffe says.
“New Zealand mortgage rates are higher than Australia and much of the developed world. That’s because our economy is not paying its way in the world and has major issues that need to be fixed. . .
Any difference in interest rates is a sign of the health of our economies. New Zealand’s is doing better than Australia’s.
That does present us with the threat of inflation which the Reserve Bank has a duty to keep under control.
That’s why the Official Cash Rate eased up from months at an historic low to 2.75 percent last week.
That’s no reason for Cunliffe to run round pretending the sky is falling.
Has he forgotten that people were paying around 11% on mortgages when the government in which he was a minister lost power in 2008?
Has he forgotten that one of the reasons for that was the high taxing, high spending policies of his government?
If he isn’t forgetting that then he’s ignoring the lessons from that and his own education which would be worse.
But that would explain why he’s peddling the unfortunately similar prescription of more tax, more churn, more spending which is what Labour policies announced so far threaten.