The biggest Official Cash Rate hike in 22 years is more pain for Kiwi households already struggling with the cost of living crisis, says National’s Finance Spokesperson Nicola Willis.

“Today’s 50 basis point increase in the OCR is the result of spiralling cost of living. With inflation at its highest level in three decades, the Reserve Bank had no choice but to raise interest rates.

“Make no mistake – interest rates are rising because of Labour’s economic mismanagement.

“Grant Robertson has overheated the New Zealand economy by pouring record new spending into a supply-constrained economy. Now, Kiwi families and businesses are paying the price.

“There are no winners from today’s announcement. Borrowers will pay more with rising interest rates, while Kiwis trying hard to save will continue to suffer as term deposit rates remain well below inflation.

“Sadly, there is no relief in sight for Kiwi families and businesses. Costs are forecast to keep soaring and interest rates will keep rising.

“These are all distortions of a Labour Government that has put PR and big spending ahead of fiscal responsibility and results.

“The rising interest rate comes at a time of plummeting business and consumer confidence, with dark clouds on New Zealand’s economic horizon.

“Under Labour, New Zealand is in the middle of the worst cost of living crisis in a generation. Kiwis deserve better.”