1 Oct 2008

Key expects borrowing to be more expensive

7:58 pm on 1 October 2008

National Party leader John Key says it will be harder and more expensive to borrow cash if the global credit crunch impacts on banks in New Zealand.

While it is a serious economic situation, Mr Key says it is important not to panic.

He told Morning Report that National is planning an integrated package of cahnges, including tax cuts and reforms to the Resource Management Act to help weather the storm.

Mr Key said there are limited things that can be done in the short term, but believes a further cut in interest rates is likely.

He said National will announce its tax cut package after the Government opens New Zealand financial books on Monday.