- By Christopher Luxon, Prime Minister and MP for Botany
Our Government was pleased to recently see a cut in the Official Cash Rate (OCR) to 5.25 per cent, because of the very welcome relief this will be to families who have been struggling with the cost of living.
This is the first time the Reserve Bank has cut the OCR since March, 2020, and families and businesses have endured the very real fallout of a stagnating economy.
I know how hard this has been for those of you in our Botany electorate. Many of you have talked to me about how your weekly food budget has been stretched, your mortgage repayments have soared, and the state of our economy has made it harder for you and your family to get ahead.
The ’s decision to lower the OCR is very good news. It’s a clear indication inflation is coming under control, and the Government’s economic plan is working.
We’ve had to make some very hard decisions, just as you’ve had to make difficult decisions in your family or business just to make ends meet.
This is a very real sign our economy is moving in the right direction.
The lowering of the OCR and cooling of inflation will ease the financial pressure you have been on for so long and is the beginning of more affordable mortgages and lower credit card repayments.
In addition to this, our tax relief and Family Boost packages have recently kicked in, and by now most of you should have seen this reflected in your pay packet.
This will further help in our efforts to end the cost-of-living struggles.
For businesses, this OCR cut is a signal it’s time to invest, hire, and grow, knowing our economic environment is improving.
We’ve been working hard since we became the Government to create the environment that will ensure these changes.
Our plan to manage inflation has been careful and deliberate, and it’s starting to show results. We know we aren’t out of the woods yet and there’s more work ahead, but this change is a positive sign we can look forward to a brighter economic outlook.
We are getting our country back on track.
