Progressive Coalition Will Review Reserve Bank Targets

3 July 2002

Progressive Coalition Leader Jim Anderton says today’s increase in interest rates won’t help to create jobs and growth and he will press for the Bank’s Policy Targets Agreement to be reviewed when a new Governor is appointed later this year.

“It’s up to the Governor whether to increase interest rates or not, but there needs to be a greater emphasis on jobs, growth and economic development to guide the Governor’s decision.

“Right now sustained economic growth offers the best path to improve the well-being of all New Zealanders across time.

“Squeezing the last drop of inflation out of the economy at any cost is out of date economic management.

“In an election period, it will be interesting to see how many parties will commit to changing the Policy Targets Agreement,” Jim Anderton said.

The PTA currently requires that the “Bank shall…implement monetary policy with the intention of maintaining a stable general level of prices, so that monetary policy can make its maximum contribution to sustainable economic growth, employment and development opportunities within the New Zealand economy.” (emphasis added)

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