Labour has called for an urgent review of monetary policy, saying the reaction to today's official cash rate cut shows change is needed. "There is an urgent need to review monetary policy, including the policy targets agreement which is now effectively being ignored by the Reserve Bank, given the heroic assumptions that underpin their attempt to meet it in the long term." Robertson said National had delegated housing and economic management to the Reserve Bank, and Governor Graeme Wheeler had made clear growth was being propped up by immigration, construction activity, tourism and monetary policy. The current policy targets agreement defines price stability as an annual inflation increase between 1 and 3 per cent, with a focus on keeping future average inflation near 2 per cent. Green Party policy is to introduce a capital gains tax that excludes the family home, and ban foreigners from buying land.

Source: Otago Daily Times August 10, 2016 23:48 UTC