We received a letter from National Party leader John Key the other day intoning us to vote for his party this weekend. The first reason he said we should vote for his party was that it would "Lower mortgage rates, leaving more money in your pocket."
The second part is right, lower mortgage rates mean more money in your pocket. But the first is rubbish. The government doesn't set interest rates. We have an independent Reserve Bank and trading banks can do what they like with pricing. Secondly anyone with a basic understanding of economics knows interest rates are low when the economy is weak. Key promises a strong economy and low interest rates.
Does anyone else get annoyed with this misleading advertising?
