Much more pain is on the way for Kiwis as out of control inflation has forced the Reserve Bank into New Zealand’s first ever 75 basis point Official Cash Rate hike, National’s Finance spokesperson Nicola Willis says.

“Never before in the history of the OCR have we seen such a dramatic interest rate increase. This comes as the ninth rate hike in a row, as the Reserve Bank is forced to screw ever tighter on interest rates to try and put a lid on rampant inflation.

“Ominously, the Reserve Bank is not only forecasting a year-long recession, but it believes inflation has not peaked, and will still be higher at the start of next year than it is now.

“This spells yet more worry for the growing group of Kiwis being kept up at night concerned about the growing size of their mortgage payments.

“Kiwis are now paying the price, literally, for Labour’s ‘fire-hose’ approach to government spending.

“Half of the mortgages in New Zealand will come up for refixing in the next 12 months. Many already stretched New Zealanders will now have to find hundreds of extra dollars a week to meet their payments.

“Kiwis are getting squeezed in all directions – rent, groceries, and mortgage payments. Under Labour, the only way these costs are going is up.

“New Zealand needs careful economic management and fiscal responsibility to get us through this difficult period. 

“National has a plan. We would rein in wasteful spending, stop adding new costs and taxes, refocus the Reserve Bank on price stability, let Kiwis keep more of what they earn, and remove bottlenecks in the economy like Labour’s overly restrictive immigration settings.”