The Reserve Bank is propping up a stalling economy while Christopher Luxon sits on his hands.
“Cuts to interest rates are welcome news for mortgage holders, but rate cuts signal a stalling economy. That’s not bragging material for any Government,” Labour finance and economy spokesperson Barbara Edmonds said.
“Cheaper mortgages will be a relief for some, but that’s not the cost of living relief Christopher Luxon promised.
“It is government choices that determine whether people can find a job, afford a home, or get ahead.
“We shouldn’t pretend that central banks run the economy – governments do. If wages are flat, prices are rising, or businesses are failing, that’s on Christopher Luxon.
“Christopher Luxon promised to fix the economy and the cost of living. Instead, he has made both worse.
“He has no plan to turn the economy around and is instead relying on the Reserve Bank to do the job he can’t. He is out of touch if he thinks he can take credit for what he doesn’t control and refuses to take responsibility for what he does,” Barbara Edmonds said.
Luxton’s trying to refloat the property bubble – but it won’t happen easily – the punters worry about getting their money out.
Let’s hope people don’t get themselves into debt they can’t service when the rates go back up. As we already have some people selling at a loss as they paid too much too much FOMO.
Also, the drop in the OCR benefits mostly homeowners not the general public who are struggling.