In last night’s trading the New Zealand Dollar rose to 72.00 cents against the US dollar, a seven month high, however eased back a little to close at 71.57c to US dollar.

This comes amid rumour the Finance Minister would advocate a 25 point raise in interest rates by the Reserve Bank.

New Zealand curency is not only at a high with the US dollar, which arguably is a weakening currency.

The kiwi dollar has advanced against most of its trading partners, Australia, Britain, Canada and China.

With returns on investment comparatively low in the US, Japan and China, foreign investment dollars are making their way into New Zealand.

Finance Minister Michael Cullen intent on solving New Zealands increasing debt, account deficit and rising currency with inreasing official cash rates.

Why oh why would the Doctors Cullen and Bollard penalize good old Kiwi mortgage holders and kiwi expoters by increasing cash rates?

Of course Mr. Cullen would argue that New Zealanders should save more and spend less.

This of course is not a ridiculous suggestion, however this is coming from a Minister and Government whose overspending is largely the reason interest rates will be raised.

In fairness to Michael Cullen and Allan Bollard it’s hard to imagine what else could be done to send a strong message to New Zealanders to stop spending on credit?

Kiwis have have numerous warnings to use the brake pedal when it comes to spending. Can you imagine how difficult this could be in a nation that has adopted shopping as a family pass-time?

Roll on the Christmas and Boxing Day Sales