Reserve Bank concern exposes National ‘back-flip’

new-zealand-labour-party

Mon Jul 06 2009 12:00:00 GMT+1200 (New Zealand Standard Time)

Reserve Bank concern exposes National ‘back-flip’

Monday, 6 July 2009, 4:43 pm
Press Release: New Zealand Labour Party

Reserve Bank concern exposes National ‘back-flip’ on inquiry

The Reserve Bank’s continuing concern at the level of interest banks are charging on floating rate mortgages shows just how wrong it was for National to muzzle a parliamentary inquiry into bank profits, says Labour finance spokesperson David Cunliffe.

David Cunliffe said the Reserve Bank, in an analysis of interest rate margins, said today that the pricing of floating rate mortgages appeared "unusually" high in recent months.

“The Reserve Bank said in its statement that it believes there is some scope for further reductions in these rates without compromising the viability of this lending.”

David Cunliffe said the Reserve Bank’s concerns underlined the need for the inquiry that National had torpedoed.

“National, with help from the Maori Party and ACT, effectively muzzled the inquiry by Parliament’s watchdog finance and expenditure select committee.

"Thousands of New Zealand homeowners, businesses, farmers and exporters have every reason to ask why," he said.

"They are paying too much for their mortgages and business loans, and they've now been denied the opportunity to find out why in a parliamentary forum."

ENDS

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