The Dominion Post reports on how interest rates have risen around 0.5% since the budget. Home Owners not happy.
The most hilarious part was this:
On Sunday, Dr Cullen accused banks of talking up tax cuts as inflationary out of self-interest …
Is this the same Dr Cullen who for several years attacked tax cuts at every opportunity as being inflationary?
The same Dr Cullen who cancelled the chewing gum tax cuts last year on the basis of them being inflationary?
You can’t have it both ways.
My position remains the same – it is the combination of both government spending and tax cuts which has an effect on inflation – and spending tends to have a greater effect as a portion of tax cuts will be saved.Tags: Interest Rates, Michael Cullen, tax cuts