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 0.7167 0.0000 0.00%
AUD 0.9558 0.0000 0.00%
EUR 0.6432 0.0000 0.00%
GBP 0.5398 0.0000 0.00%
HKD 5.5636 0.0000 0.00%
JPY 73.4440 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1339.0 17.480 2016-07-01T00:
Oil Brent 50.9 1.180 2016-07-01T00:
Oil Nymex 49.0 0.750 2016-07-01T00:
Silver Index 19.6 0.967 2016-07-01T00:

Indices

Symbol Open High Last %
NZX 50 6897.5 6932.1 6897.5 0.42%
NASDAQ 4837.2 4880.2 4842.7 0.41%
DAX 9742.8 9806.5 9680.1 0.99%
DJI 17924.2 18002.4 17930.0 0.11%
FTSE 6504.3 6587.4 6504.3 1.13%
HKSE 20736.8 20828.0 20436.1 1.75%
NI225 15698.0 15765.0 15575.9 0.68%
ASX 5233.4 5278.9 5233.4 0.25%