RBNZ Must be Held Accountable for Repeated Failures

Commenting on today’s news that the CPI has still dropped only marginally to 5.6%, Taxpayers’ Union Policy Adviser, James Ross, said:

“For the 28th month in a row, the Reserve Bank has failed to hold inflation to within the target range. With inflation still sitting at an unsustainably high 5.6%, hardworking Kiwis struggling to make ends meet will be hurting most from this news and the only question that will matter today is for how long they will keep being punished for flagrant and wasteful Government spending?

“Whilst other nations are nearing a return to the 3% target range, Kiwis are still seeing food and fuel prices spiral out of control. Any incoming Government must hold the Reserve Bank and its leadership accountable for their failure to meet their targets. Moreso, this is simply proof that Labour’s introduction of a dual mandate for RBNZ has not worked and the Reserve Bank must return to its single focus on inflation.

“The IMF’s pleas for the Government to put the needs of working people first are still falling on deaf ears. With the price of food, petrol and other necessities still spiralling out of control, the only solution is a return to credible economic management and an end to reckless and inflationary overspending. Unfortunately, the deadly combination of high inflation and high interest rates looks set to stick around for a while yet. With National promising to maintain 98% of Labour’s spending, any incoming Government must go further and faster to cut the waste.”