N.Z. Labour Party Proposes New RBNZ Tool to Control Inflation
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New Zealand’s Labour Party will give the central bank an alternative tool for controlling inflation if it wins this year’s election, in what it says would be a world first.
Labour will give the Reserve Bank the ability to change the rate of a national pension savings program, finance spokesman David Parker said in a statement today. The RBNZ could use the new tool as an alternative to the official cash rate to “take the heat out of the economy,” Parker said.