“The return of the Reserve Bank to a single focus on price stability marks a major victory in ACT’s mission to tame the cost of living,” says ACT Finance spokesperson Todd Stephenson.

“ACT is pleased that the Government has prioritised this legislation, which was a key part of our coalition agreement with National.”

“A laser focus on keeping inflation under control was a hallmark of New Zealand’s monetary policy for almost 30 years. Labour’s introduction of a second, often-conflicting goal for the Reserve Bank was a classic case of mission creep, diluting the Bank’s focus and undermining its credibility.”

“ACT’s hope is that the legislation passed today is a first step toward restoring public confidence in the Reserve Bank’s ability to stabilise prices. Public confidence in the Bank is vital to avoiding inflationary spirals, where businesses hike prices merely in anticipation of future inflation.”

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