ACT is welcoming the Government’s announcement of a 25 percent reduction in budgeted operational funding for the Reserve Bank, which aligns with the commitment in our coalition agreement to narrow the Reserve Bank’s remit and focus on price stability.

ACT Leader David Seymour says:

“Under Labour, the Reserve Bank used its resources to weigh into climate change and Treaty issues. Labour also distracted the bank further from its inflation-fighting mission by giving it a new employment target.

"Last year there were at least nine full-time staff focused solely on DEI, Te Ao Māori, and climate change at the Bank. No one asked for that. We fund the Bank to keep prices stable at the checkout – not to waste money on virtue signalling.

“Overall staff numbers doubled as the Bank’s scope crept. Increased resourcing and more communications staff failed to stop inflation from spiking to above seven percent. In fact, the Bank poured fuel on the inflation fire by printing billions of dollars in an attempt to paper over the COVID crash.

“While the Reserve Bank acts independently, its remit is set by the Government. We’ve restored the Bank’s single target of keeping inflation between one and three percent, and now we’re tackling the waste and the bloat.

“ACT's hope is that a leaner, less distracted Reserve Bank will better deliver on its primary goal of fighting inflation.”

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