The Reserve Bank's decision to lift the official cash rate means higher mortgage payments for families already struggling with the rising cost of living under National – and it exposes National’s plan as a broken promise.

"National promised to fix the cost of living, but two and a half years on, their record is higher costs and higher unemployment,” Labour finance and economy spokesperson Barbara Edmonds said.

“Power prices have gone up 20 percent in two years. Everyday food items like mince and milk are more expensive. Seeing a doctor costs more, and now mortgages are set to go up too.

“Christopher Luxon and Nicola Willis were quick to take credit when mortgage rates came down. They need to take responsibility now they're set to go back up. National’s flawed plan was to let the Reserve Bank do the heavy lifting but this just shows they have no plan.

"The independent Reserve Bank has been doing what it can to help with high costs. Ultimately, what New Zealand needs is a Government that is focused on helping people with the high cost of living, and making our economy more productive. Instead, Christopher Luxon is making things worse.

"National has been crowing about bringing mortgage rates down, so they need to explain to Kiwis why mortgages are going up.

"Labour has a plan to put more money back in people's pockets, with three free doctor's visits, a $20 public transport fare cap, and our new SolarSaver policy that will help families save money on their power bills," Barbara Edmonds said