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NZ Nats Promise Rate Cut


NEW ZEALANDS Opposition National Party has pledged to reduce interest rates by curbing government spending and increasing productivity if it wins next years election.

Finance spokesman Bill English said the countrys record 8.25 per cent benchmark interest rate, the highest after Icelands among AAA-rated countries, was caused by Government overspending and economic mismanagement.

"Eight years of steady but not spectacular growth have pushed this economy into a spiral of rising interest rates and record-high exchange rates," he told a party conference.

"Home owners and exporters are paying the price for Labours profligate spending."

New Zealands official cash rate has been increased four times this year as the Reserve Bank of New Zealand battles to subdue inflation.

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