Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Report on supplementary tools released

Reserve Bank of New Zealand

Press Release

6 April 2006

Report on supplementary tools released

The Reserve Bank and the Treasury today released a joint report (www.rbnz.govt.nz/monpol/about/) on possible additional instruments to supplement the role of interest rates in managing demand pressures and inflation.

This report, prepared under terms of reference (www.rbnz.govt.nz/monpol/about) issued in November 2005, was prompted by the recent strength and persistence of domestic household demand, the scale of the accompanying external imbalances, and the key role played by the house price cycle.

In calling for this report, it was considered that, if additional non-interest rate instruments were available to more directly target the housing sector, they might alleviate some of the pressures on the exchange rate and the traded goods sector. Such instruments would be structured so that they would be relevant for use in any future period of cyclical housing pressure, said Reserve Bank Governor, Alan Bollard, and Secretary to the Treasury, John Whitehead, in a joint statement.

"The report considered a range of possible additional instruments. It concludes that there are no simple, or readily implemented, options that would provide large payoffs in the near-term, without significant complications and costs, but there are some areas in which further work may be appropriate. These will be picked up in the course of ongoing work on macroeconomic policy.

"We remain interested in the possibility that additional discretionary instruments, including ones not directly related to the housing sector, might be able to mitigate the impact on the tradables sector of cycles in domestic demand, but further work in this area is not a high priority for us at present."

The report was prepared by a joint team of Treasury and Reserve Bank officials for the Governor and the Secretary, who then made recommendations to the Minister of Finance. Also released today is the letter (www.rbnz.govt.nz/monpol/about) provided by the Governor and Secretary to the Minister of Finance.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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>>


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>>


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>>


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>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news