Labour happy with a cost-of-living crisis

Labour’s Finance spokesperson, Barbara Edmonds, has reportedly hinted that a Labour-led government would move the Reserve Bank away from its single mandate to control inflation, and bring back a mandate to target maximum sustainable employment.

Taxpayers’ Union spokesman James Ross stated that “this would be a disastrous mistake. Kiwis can clearly see the damage that the dual mandate inflicted, and that businesses and households around them are still suffering from the cost-of-living crisis. Distracting the Reserve Bank from fighting inflation is the last thing New Zealand needs.”

“Monetary policy must focus on one objective only, which is maintaining inflation within the current target band. Diluting that focus ends up with the Reserve Bank having to take drastic action to wrestle out-of-control inflation, which is what caused the severe economic recession we’re currently struggling to climb out of.”

“Last year, Labour also floated the idea of raising the inflation target band and seeing everyday prices spiral at a quicker rate. Does Ms Edmonds seriously think either of these changes are credible policy? With the cost of living consistently the most important issue to voters, it’s about time Labour got with the agenda.”