RBNZ Had Independence Concerns About Changes to Policy Remit
- Bank didn’t support some changes to key operational document
- Inflation, employment goals are retained with wording tweaks
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New Zealand’s government has given the Reserve Bank’s Monetary Policy Committee a fresh remit containing an expanded section of context that the central bank didn’t want included because of concerns it could undermine its independence.
The current monetary policy framework remains fit for purpose and the RBNZ’s operational objectives are unchanged apart from minor changes to wording, Finance Minister Grant Robertson said Tuesday in Wellington. The inflation target remains 1-3% over the medium term with a focus on the 2% midpoint, and the second objective of supporting maximum sustainable employment is retained.