4861 (2024). Hon Barbara Edmonds to the Minister of Finance

4861 (2024). Hon Barbara Edmonds to the Minister of Finance: Why doesn’t the Minister think the OCR will stay higher for longer, according to 25 March 2024 Post-Cabinet Press Conference?

Hon Nicola Willis: The Government remains committed to a fiscally neutral tax reduction through reprioritisation and new revenue measures. Tax reductions are generally thought to be less stimulatory than general government consumption, so tax relief financed through reductions in government consumption should reduce inflationary pressure, and so result in lower interest rates than would have otherwise been the case.