Peters calls for urgent interest rate cut

Winston Peters

NZ first leader Winston Peters has joined John Key in calling for an immediate interest rate cut.

Peters said today the Reserve Bank should cut rates now and not wait until its next scheduled announcement on October 23.

He said: "The bank is sitting on its hands while companies collapse, jobs are lost and the equity disappears from family homes.

"Other countries are slashing interest rates and doing everything they can to stay afloat while in New Zealand the Reserve Bank is taking a finger in the wind approach."

Key drew some criticism earlier this month when he called for an instant one per cent rate cut.

A spokesman for Finance Minister Michael Cullen said at the time the bank was independent of politicians and it would not be appropriate for the Government to say anything that could be interpreted as putting pressure on it.

- NZ HERALD STAFF