"While the recent tax cuts will help, the Reserve Bank now needs to:
* Cut the Official Cash Rate (OCR) by at least one percent;
* Ensure NZ banks have access to sufficient Reserve Bank credit to ensure responsible lending can continue;
* Reassure business, depositors and lenders that our banks are safe and fully able to keep on lending.
"The Government needs to assure depositors that, should it be required, it will guarantee them even though all our banks are rated amongst the top 26 in the world.
"Now is not the time to maintain and overly narrow focus on inflation. Restoring confidence to ensure the recession does not deepen must take priority."