RBNZ faces biggest revamp in decades if Labour wins election

New Zealand’s central bank may be facing the biggest shake-up to the way interest rates are decided since it pioneered inflation targeting three decades ago.

The main opposition Labour Party, which has a chance of victory in a Sept. 23 election that’s too close to call, wants the Reserve Bank to add full employment to its existing sole mandate of price stability. It also proposes policy be decided by a committee that would include external members, rather than the governor as lone decision maker.

New Zealand’s central bank may be facing the biggest shake-up to the way interest rates are decided since it pioneered inflation targeting three decades ago.

The main opposition Labour Party, which has a chance of victory in a Sept. 23 election that’s too close to call, wants the Reserve Bank to add full employment to its existing sole mandate of price stability. It also proposes policy be decided by a committee that would include external members, rather than the governor as lone decision maker.

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