Green Party says it’s time to reform the Reserve Bank Act

Russel Norman

Green Party co-leader Russel Norman told TVNZ’s Q+A programme today that “jacking up the OCR” is not the only answer to the threat of inflation.

He said the Green Party wants a broader approach to monetary policy.

It would also use Government tools to target the sectors where there is inflationary pressure – like housing and electricity.

“What you need to do when you're dealing with inflation coming out of particular sectors is target those sectors like housing, electricity, where we have big inflationary pressures, rather than using the official cash rate to crush the entire economy, bring up the exchange rate and make the tradable sector really struggle, which is the current strategy of this government.”

“We have some deep lying structural issues in the New Zealand economy, and the answer to them isn't to jack up the OCR every time we see inflationary pressures from the housing market, the answer is to target the housing market with the kind of tools the government has available to take the heat out of that market.”


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6584 -0.0016 -0.24%
AUD 0.9023 -0.0028 -0.31%
EUR 0.5993 -0.0041 -0.68%
GBP 0.4218 -0.0012 -0.28%
HKD 5.1100 -0.0061 -0.12%
JPY 81.6220 -0.2770 -0.34%

Commods

Commodity Price Change Time
Gold Index 1094.9 6.310 2015-07-31T00:
Oil Brent 52.2 -1.100 2015-07-31T00:
Oil Nymex 47.1 -1.410 2015-07-31T00:
Silver Index 14.8 0.060 2015-07-31T00:

Indices

Symbol Open High Last %
NZX 50 5891.9 5937.6 5891.9 0.49%
NASDAQ 5148.2 5155.0 5128.8 -0.01%
DAX 11271.3 11309.0 11257.1 0.46%
DJI 17755.9 17783.6 17746.0 -0.32%
FTSE 6668.9 6705.4 6668.9 0.41%
HKSE 24650.9 24661.2 24498.0 0.56%
NI225 20506.5 20585.2 20522.8 0.30%