Reserve Bank in la la land? We hear ya!

“Kiwis are experiencing one of the most expensive summers in history partly thanks to the Reserve Bank (RBNZ) getting things completely wrong, ACT would get it back to basics,” says ACT’s Associate Finance spokesperson Damien Smith.

“RBNZ distorted Government policy by giving it cheap credit, now we are all paying the cost, literally in the rising price of everything.

“RBNZ claims it needed to stimulate because economic forecasts were bad. In reality it subsidised bad policy from the Government.

“Finance Minister Grant Robertson’s insistence on a dual target helped to encourage irresponsible monetary policy, which subsidised bad government policy.

“The Policy Targets Agreement used to tell the Governor ‘hit this target by this quarter or you’re fired.’ Now it says achieve this target in the ‘medium term’ while having regard to five other things. He’s accountable for everything and nothing, and it cost Kiwis billions.

“The low standards Labour accepts were proven by the reappointment of Adrian Orr for another full term.

“ACT would restore monetary policy credibility to the Reserve Bank by returning its mandate to solely taming inflation, allowing the appointment of monetary policy experts from New Zealand and abroad, and applying stricter scrutiny in future before granting Crown indemnities

“ACT would set a strict Monetary Policy Remit with specific targets in specific timeframes. We will restore monetary policy credibility to the Reserve Bank by returning its mandate to solely taming inflation, allowing the appointment of monetary policy experts from New Zealand and abroad, and applying stricter scrutiny in future before granting Crown indemnities.

“It’s what New Zealanders deserve so they are not the victim of monetary incompetence that amounts to a thief in their pocket."

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