Interest Rates

Dr Cullen is trying to scare-monger that tax cuts under National will be inflationary and lead to interest rate hikes. This misses the point that $1 of spending is more inflationary than $1 of tax cuts.

It is also risable that suddenly now Dr Cullen is worried about interest rate increases. Interest rates have gone up a whopping seven times in the last 18 months. And why? The OECD blames it on the run-away Government spending.