The Reserve Bank of New Zealand’s new dual monetary policy framework came into force on April 1. It adds maximum employment to the inflation target adopted in 1990.
But the issue of dual mandates has long been controversial, with many worrying that a central bank trying to chase two objectives will lose track of both.
The Labour party, in power since October 2017, campaigned on a promise to reform the RBNZ’s targets and increase transparency and accountability in its policy-making processes.
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