The National Party says its being forced to reconsider axing the top tax rate because the economy is in worse shape than predicted.
The Reserve Bank yesterday raised the official cash rate by the single biggest level since December 2008 and predicted further hikes ahead.
National had planned on scrapping the top tax rate of 39 percent if elected next year.
National's finance spokesperson Nicola Willis told Morning Report they'd always said it would depend on the economic conditions.
She says the Reserve Bank yesterday indicated higher interest rates and inflation than earlier predicted.
