Key John: Questions for Oral Answer — Questions to Ministers Questions to Members 
Key John: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:620;Page:15960] 
9.  
JOHN KEY (National—Helensville) 
 to the  
Minister of Finance 
: Does he stand by his recent statement regarding the official cash rate: “The bank has indicated the near certainty of one more move and then one or two more after that if one reads their published statements”; if so why? 
Hon TREVOR MALLARD (Acting Minister of Finance) 
: 
 Yes the Minister of Finance has read their statements. 
John Key 
: Is the Minister telling the mortgage payers of New Zealand that floating rates are going up three more times this year to 9 percent; if so why? 
Hon TREVOR MALLARD 
: I am telling this House that the Minister of Finance has read the latest Monetary Policy Statement appendix 1 page 25. 
H V Ross Robertson 
: What are the Reserve Bank’s published statements that Dr Cullen based his comment upon? 
Hon TREVOR MALLARD 
: The latest Monetary Policy Statement appendix 1 page 25 shows the 90-day bill rate rising by a further 50 basis points to 6.75 percent by the first half of next year. The 90-day bill track is generally interpreted by economists as indicative of the official cash rate track. I would also note that the futures market is pricing an official cash rate of 6.75 percent by the end of this year. I say—not on behalf of the Minister this time—that the Minister can read. 
John Key 
: Does the Minister know that he has told the House that the official cash rate is going to 6.75 percent—it happens to be 6.25 percent today so three more moves will take us to 7 percent; does the Minister understand simple official cash rate documents? 
Hon TREVOR MALLARD 
: I suggest that the member read the comments made by the Minister of Finance where he said “two or three.” The member should know the difference between 2.5 percent and 3 percent. If he does not he is stupid. 
Mr SPEAKER 
: The last comment from the Minister was out of order. He will stand withdraw and apologise. 
Hon TREVOR MALLARD 
: I withdraw and apologise. 
John Key 
: Is the Minister of Finance going to continue this habit of blurting out interest rate hikes before the Governor of the Reserve Bank has had the chance to announce them himself; if so why when and how often? 
Hon TREVOR MALLARD 
: The Minister of Finance did not blurt out the official cash rate track. What the Minister of Finance did was comment on page 25 of the latest Monetary Policy Statement. I would have thought the member as Opposition spokesperson on finance and someone who has made a lot of money out of junk bonds would know how to read it. 
Mr SPEAKER 
: The Minister knows that he made a statement in the middle of all that which was out of order. I will not have it repeated. The Minister knows that that is not correct and he will withdraw and apologise immediately. 
Hon TREVOR MALLARD 
: I do not know that I made such a statement. 
Mr SPEAKER 
: Well I do—in relation to the income of Mr John Key. I want the member to withdraw that comment and apologise for it and I do not want it repeated. 
Hon TREVOR MALLARD 
: I withdraw and apologise. I raise a point of order Mr Speaker. If it was the comment relating to the income source of the member that is something that is on record and it is something that the member himself did not object to. 
Mr SPEAKER 
: No it is not. It is a personal reflection on the member. I do not appreciate it at all. The Minister is now severely cautioned. I do not want to have to send him out because he has another question to answer but if he does make any other comment in that regard that is the end of the matter.