Labour’s monetary policy changes need further consideration
29 April 2014
ExportNZ says Labour’s monetary policy changes need further consideration
ExportNZ welcomes more of a conversation around the proposed monetary policy changes outlined by David Parker, Labour’s Finance spokesperson.
Executive Director Catherine Beard says, “While it is useful to review all polices over time, and exporters are understandably concerned with the high dollar, there is a range of reasons why it’s high. Many of these reasons are beyond New Zealand’s control – such as radical monetary policies adopted in the EU and US.
“Requiring the Reserve Bank to make trade-offs between inflation and other new objectives such a ‘positive external balance’, is something that is largely beyond the ability of the Reserve Bank to achieve and will create significant uncertainty.
“While issues such as housing affordability and immigration policy are very important for New Zealanders, it is imperative that the right tools are used to address specific issues, rather than try and make the Reserve Bank responsible for solving problems that are best addressed by Government policy.
“It is important to have a discussion about this, but any proposals will need to be vigorously tested before proceeding any further. We appreciate the fact that Labour is attempting to think about how to provide advantage to the export sector, but we’re not sure this is the right way.”