Reserve Bank Governor May Get More Powers

Reserve Bank Governor May Get More Powers

A senior Government MP is hinting at changes to the Reserve Bank Act to help fight the high Kiwi dollar and inflation.

On TVOne’s Agenda Labour MP Shane Jones, chair of Parliaments's Finance and Expenditure Select committee, said its upcoming inquiry into monetary policy could see the Reserve Bank Governor’s powers expanded.

"I've got no doubt in my mind that we're going to get quite a few radical ideas as to how perhaps the Governors job might be improved or the instruments he has access to," said Mr Jones.

Mr Jones said day to day kiwis were not are not happy about high interest rates and they were frightened about the high dollar.

"What we will try to do with the review is give everyone an opportunity."

However he warned that " we're a bit suspicious of the tired old faces coming in and trotting out the old ideological lines,.

Mr Jones indicated that if radical changes in managing monetary policy did take place, it would need a high degree of support from those in Parliament.

"It has enjoyed widespread parliamentary support and I think any suggestion that it be changed has to be done with a great deal of judiciousness"

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