Monetary Policy Spat A Distraction

27 June 02

Monetary Policy Spat A Distraction From The Main Issue, Says Wellington Chamber

“The current political ruckus about operation of monetary policy, pending further Reserve Bank moves, is a distraction from the main issue,” said Wellington Chamber of Commerce CEO Philip Lewin today.

Mr Lewin continued: “The real issue is our 4 per cent plus growth target. It then becomes a matter of how the Reserve Bank’s actions can promote this. But there is more to higher growth than monetary policy”.

“For starters, New Zealand could do with a better-skilled labour supply, and a better innovation system. This said, monetary policy undeniably has a key role to play”.

“What we first need to hear from the politicians is a real commitment to the 4 per cent-plus growth goal. Next, after the election, there should be an open dialogue between Government, enterprises, employees and economists on monetary policy and how it can best assist that growth” Mr Lewin said.

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