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.


Ends


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news