MNI BRIEF: NZ Gov Drops Employment From RBNZ Remit

New Zealand’s Minister of Finance Nicola Willis has amended the Remit for the Reserve Bank of New Zealand’s Monetary Policy Committee, removing the objective to support maximum sustainable employment.

“The amendment is consistent with advice the Reserve Bank has given in the past and helps to reiterate our focus on achieving low and stable consumer price inflation,” said Board Chair Professor Neil Quigley.

Willis kept the bank's 1-3% inflation target.

"Alongside the new Remit, the MPC has also agreed to changes to the MPC’s Charter with the Minister of Finance," the RBNZ noted in a statement. "The Charter sets out decision-making processes and transparency requirements for the MPC.

MNI noted the newly-elected centre-right government would change the MPC’s remit within its first 100 days in office. (See MNI: RBNZ To Lose Dual Mandate Within 100 Days- Ex Staff) The government has targeted a number of other reforms, which it hopes will increase accountability. (See MNI INTERVIEW: RBNZ Reform To Add Urgency To Inflation Fight)