Bank backs Aussie-Kiwi policy

NEW ZEALAND - A journal published by the Hong Kong and Shanghai Banking Corporation (HSBC) has called on Australia and New Zealand to adopt a common monetary policy.

However, the Australia and New Zealand Weekly said this did not mean that New Zealand should adopt Australia's currency.

The weekly journal said that, because the Australian economy was six times larger than New Zealand's, the Australian monetary policy should become the single monetary policy of the common currency area.

HSBC chief