Reserve Bank Law Change Would Boost Our Flagging Economy

Published: Thu 16 Aug 2012 12:54 PM
Rt Hon Winston Peters
New Zealand First Leader
16 August 2012
Reserve Bank Law Change Would Boost Our Flagging Economy
New Zealand First calls on all political parties to support our Members Bill to amend Reserve Bank rules so it can properly manage our seriously overvalued exchange rate.
Mr Peters says the Reserve Bank of New Zealand (Amending Primary Function of Bank) Amendment Bill would expand the Bank’s focus.
“The historic role of the Reserve Bank is to keep the rate of annual inflation between one and three per cent. It was legislated for in the 1980s during the time of Rogernomics and rampant inflation.
“While the inflation goal remains important, this Bill would provide the Reserve Bank with the flexibility it needs to also promote growth, employment, and boost our struggling export sector.”
Mr Peters says everyone from the International Monetary Fund to local economists agree our exchange rate is seriously overvalued by about 20 per cent.
“It is crippling our international competitiveness and severely distorting and damaging our economic prospects.
“The Bill being drawn from the ballot today provides a golden opportunity to rebalance the New Zealand economy and put us back on a track to prosperity.
“Given the new international economic conditions we face, habitual tinkering will not suffice.
“At long last our Bill will address the fundamentals our export dependent economy so desperately needs,” says Mr Peters.
Copy of the Bill available here.

Next in New Zealand politics

Next Steps To Improve Safety In Wake Of Whakaari White Island Tragedy
By: New Zealand Government
Expert Group Appointed To Lead New Zealand’s Future Health System
By: New Zealand Government
Kiwis Overseas Must Be Allowed To Vote Next Year
By: Green Party
Power bill changes bring fairness to charges
By: New Zealand Government
Govt parks the expiry of licenses, WoFs and regos
By: New Zealand Government
Highest jump in weekly benefit numbers since first lockdown
By: Child Poverty Action Group
Bay Of Plenty District Health Board Chair Sharon Shea Appointed Co-Chair Of The Māori Health Authority
By: Bay of Plenty District Health Board
Senior Doctors Call For Strong Clinical Voice To Lead Health Reforms
By: Association of Salaried Medical Specialists
NZMA Welcomes Health System Board Appointments
View as: DESKTOP | MOBILE © Scoop Media