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.”
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Ardern cruises to Mt Albert victory, bringing Huo into Parliament
- Smith’s swimmable rivers scheme burning holes in farmers’ wallets
- Carry on: Xiamen for Auckland, Cathay for Christchurch, Virgin for HK and more
- Carl Bland has another hit with Spirit House
- MARKET CLOSE: NZ shares fall, Warehouse and Mercury NZ drop while Air NZ gains
Most listened to
- Business Week in Review with Grant Walker and Andrew Patterson
- Sunday Business with Andrew Patterson featuring Joanna Blatstone and Neil Parischa
- Rodney Hide: Advance means retreat for glacier scientists
- Stewart Germann and Gehan Gunasekara go head-to-head on the franchising debate
- Racism lies behind Little’s kaupapa Maori attack, says Matthew Hooton