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Reserve Bank Appointment Welcomed

"Rod Carr's appointment as acting Governor of the Reserve Bank, for up to six months or until a permanent appointment is made, is good news for monetary policy stability," says National's Finance Spokesman David Carter.

Mr Carter says it is very important that the financial markets have confidence in the consistency of the Reserve Bank and this appointment will do just that.

The Reserve Bank is expected to, again, lift the Official Cash Rate tomorrow.

"Dr Carr will be forced to lift the OCR in an effort to dampen down the inflationary pressures on the economy.

"This will be yet another reminder to the Government that it must follow sound economic policies - as proposed in National's economic framework - which encourage, not stifle, growth without causing inflation," Mr Carter concluded.

Ends

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