Failure to Meet Key Targets Must See RBNZ Get Back to Basics

Commenting on ACT leader David Seymour’s call for a return to the Reserve Bank’s single mandate and the disestablishment of the Monetary Policy Committee, Taxpayers’ Union Policy Adviser, James Ross, said:

“For 28 long months in a row, Adrian Orr and the Reserve Bank have failed to keep inflation within the target range, with inflation even now still at almost twice the upper limit of acceptable levels. RBNZ’s experiment with a dual mandate focussing on both inflation and unemployment has failed, and any incoming government must take New Zealand back to the tried-and-tested basics.

“New Zealand led the world when it introduced the single mandate in 1989. Nations such as the UK quickly followed suit when it became clear this was a system that worked, and Labour’s massive leap backwards has allowed inflation to spiral out of control. For far too long hardworking Kiwis have had to battle with runaway prices for essentials such as food and fuel, and a return to the single mandate would be a first step towards finally getting inflation under control.

“There should be no doubt that a Governor of the Reserve Bank who fails to do their job must fall on their sword. Adrian Orr continues to hide behind the Monetary Policy Committee to shirk responsibility for his failures. If RBNZ is to regain any credibility then we need to see a return to accountability at the top, and so the Monetary Policy Committee must be scrapped."