Christopher Luxon says Kiwis "need" the National Party to "demonstrate very good economic management" after the Reserve Bank lifted the official cash rate (OCR) by a record 75 basis points.
The Reserve Bank is warning Kiwis to brace for a likely recession next year and to slow their spending as it battles to tame inflation.
To try and curb Kiwis' spending, it's been lifting the OCR since last year to drive up the cost of borrowing money.
But Reserve Bank Governor Adrian Orr said people are still spending.
"Think harder about your spending, think about saving rather than consuming - I know that's a strange concept. Just cool the jets."
If rising interest rates aren't enough to make you stash your cash, a recession might be. The Reserve Bank said one's likely next year.
"It is a period of negative economic growth that is being forecast, but New Zealand is strongly positioned," said Finance Minister Grant Roberston.
Luxon said the forecast is "worrying", adding the public "need the National Party to demonstrate very good economic management".
Next year will also see a continuation of interest rate hikes. The Reserve Bank's new forecast is for the OCR to peak at 5.5 percent next September and stay there until 2024.
"Inflation is no one's friend, and so we want to get there sooner - that's why you're seeing a quite steep forward path for the official cash rate."
A rise of that size could add $12,000 to a $500,000 loan - a huge cost for borrowers - and Kiwibank economist Jarrod Kerr believes it goes too far.
"We are looking at a Reserve Bank that is hell-bent on getting inflation down, but I think they are risking overcooking their response."
Inflation is so high for some Kiwis that they're heading back to work. Pensioner Abrim Shamon is one of those who's had to do that.
"I am retired, I'm 72, but I'm looking for a job to support myself, support my family."
But the retired teacher has flung out of retirement to find a job - but he's finding the hunt tough.
"It's very hard to get a job, especially at this age."
He's one of many struggling with inflation. Wellingtonians Newshub spoke to are in the same boat.
"We used to get a little bit of savings from weekly pay, but now it's all gone," one said.
"Food is really expensive, insurance, paying for the bus to get to work is quite a lot," said another.
