Labour adopts new line on NZ inflation

NEW ZEALAND - New Zealand's Labour party intends to rewrite a policy agreement with the Reserve Bank to make it adopt a more flexible approach to controlling inflation. Releasing details of his party's election manifesto yesterday, Michael Cullen, finance minister, said the move echoed the approach of Australia's central bank.

Mr Cullen has been critical of the bank's narrow interpretation of the current agreement. New Zealand had increased the official cash rate four times this year, he said,