NZ govt monetary review suggests adopting MPC

A government review of the Reserve Bank of New Zealand's monetary policy by Swedish academic Professor Lars Svensson recommended the setting up of a formal monetary policy committee and altering the RBNZ's inflation objective to more formally target 1.5 percent, within the current 0-3 percent range.

Any changes should come into effect at the start of the next term of the RBNZ governor - in September 2003 - the review said. Finance Minister Michael Cullen and RBNZ Governor Don Brash both said i