Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Dr Cullen muddies the waters of monetary policy

Treasurer Bill English said today that comments by Dr Cullen on the outlook for interest rates and the operation of monetary policy demonstrated the Labour Party’s disregard for the independence of the Reserve Bank.

“For the second time in two months Dr Cullen has indicated that he considers his own judgement on monetary policy to be at least as good if not better than the
Reserve Banks.

“A Reserve Bank independent of political influence has been a key contributor to lowering inflation in New Zealand. Comments by Dr Cullen only create uncertainty around monetary policy.

"The Labour Party owes it to the public of New Zealand to lay out in detail what changes it would make to the Policy Targets Agreement (PTA).

“Labour should also outline the circumstances in which it would override the judgement of the Governor of the Reserve Bank. Even if the PTA is changed to accommodate Labour’s preferences, it is clear that Dr Cullen would find it difficult to allow the Governor of the Reserve Bank to do his job independently of political pressure.

“The outlook for the New Zealand economy is good, and we expect sound growth over the next 2 or 3 years. Against that background interest rates are likely to rise through the business cycle.

“Independent monetary policy is about allowing the Reserve Bank to determine how and when that happens,” said Mr English.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election