Wheeler Waves the White Flag
Rt Hon Winston Peters
New Zealand First Leader
Member of Parliament for Northland
23 AUGUST
2016
Wheeler Waves the White Flag
The Governor of the Reserve Bank, Graeme Wheeler has waved the white flag over interest rates, housing and the high Kiwi dollar, says New Zealand First.
“The Reserve Bank has announced that they’re just a spectator when they ought to be a player,” says Leader of New Zealand First and MP for Northland Rt Hon Winston Peters.
“Aside from admitting he’s the ‘Eeyore’ of Reserve bank governors, Governor Wheeler has admitted that Inflation Targeted Monetary Policy is hostage to global investment flows and our Reserve Bank has only ‘limited control over the exchange rate’. What an admission.
“Governor Wheeler’s admission means we need a major overhaul because Inflation Targeted Monetary Policy has gone well past its ‘use-by date’.
“The primary function of the Reserve Bank Act must be broadened to include the rate of economic growth, export growth, the value of the dollar and employment, as well as, price stability.
“As for the dollar, the free-float we have makes us the plaything of the wide-boy money traders and as a consequence of today’s speech by Governor Wheeler, it is time to look at other models especially the Singaporean ‘Basket, Band and Crawl’ model.
“This is where the dollar operates in a band relative to our trading partners and rivals, because one thing is for certain, doing nothing should never have been an option,” Mr Peters said.
ENDS