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Prime Minister John Key is satisfied the Reserve Bank’s focus on price stability is "on the right track".
New Zealand First wants a change to the Reserve Bank Act, in order to remove the focus on inflation targets and look more closely at the "over-valued" exchange rate.
The party commissioned a report from economic analysts BERL, which concluded an amendment was needed in order to "benefit New Zealander’s lives".
Mr Key says he will not be voting for the bill if and when it comes up in parliament.
He says the government is required to effectively review the act before Graeme Wheeler takes over as the new Reserve Bank governor.
Mr Key says a briefing in cabinet on the issue today has revealed a number of changes which might be made. The new policy targets agreement was signed this morning by Mr Wheeler and finance minister Bill English.
“What I can say is that any changes are very modest. We have effectively reviewed this and we’re comfortable we’re on the right track.”
He has given assurance the current emphasis on price stability and inflation will not be changed.
“We won’t change the emphasis on price stability – the general advice and the general agreement is that the settings are about right.
"There are some very minor changes.”
He disregards a suggestion by JB Were head of investment strategy Bernard Doyle that the Reserve Bank should regard the New Zealand economy as being in serious danger of becoming financially unstable.
Mr Key admits the high kiwi is affecting exporters who export goods solely in US dollars, but says the strength of the dollar reflects the international confidence in the New Zealand economy.
“To say New Zealand economy is unstable is nonsense.”