{"id":8639,"date":"2023-12-13T05:13:38","date_gmt":"2023-12-12T16:13:38","guid":{"rendered":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=8639"},"modified":"2023-12-13T05:13:38","modified_gmt":"2023-12-12T16:13:38","slug":"parliament-urgently-debates-reserve-bank-dual-mandate-repeal","status":"publish","type":"post","link":"https:\/\/thebuzz.apnanetwork.co.nz\/?p=8639","title":{"rendered":"Parliament urgently debates Reserve Bank dual mandate repeal"},"content":{"rendered":"<p>Legislation to scrap the Reserve Bank&#8217;s employment mandate is being rushed through Parliament under urgency, with the opposition decrying it as &#8220;pointless&#8221; and a backward step.<\/p>\n<p>The bill, being passed under urgency through all stages, is the first piece of legislation for the new government.<\/p>\n<p>It would remove the Reserve Bank&#8217;s dual-mandate, meaning it would no longer be required to push for maximum sustainable employment levels across the country.<\/p>\n<p>This would leave it able to focus solely on its other mandate of keeping inflation in the target range of between 1 and 3 percent: avoiding the dangers of deflation where costs go down, while keeping costs from rising too steeply.<\/p>\n<p>Labour had brought the dual mandate in after campaigning on it in 2017, saying a focus on employment would contribute to the overall health of the economy. National and ACT campaigned this year on returning to the single target, saying this would keep it focused on inflation.<\/p>\n<p>The RBNZ late last month kept the official cash rate at 5.5 percent, and warned cuts to the rate were\u00a0<a href=\"https:\/\/www.rnz.co.nz\/news\/business\/503520\/reserve-bank-keeps-official-cash-rate-at-5-point-5-percent\">unlikely before 2025<\/a>. A high official cash rate like this puts pressure on banks to increase costs for mortgages with the aim of encouraging people to spend less &#8211; thereby reducing pressure on the economy and keeping cost inflation down.<\/p>\n<p>The motion for urgency means the bill &#8211; along with the repeal of Fair Pay Agreements and the Clean Car Discount &#8211; would continue to be progressed for extra hours each night and morning this week, and they will not be referred to select committee.<\/p>\n<p>rnz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Legislation to scrap the Reserve Bank&#8217;s employment mandate is being rushed through Parliament under urgency, with the opposition decrying it as &#8220;pointless&#8221; and a backward step. The bill, being passed under urgency through all stages, is the first piece of legislation for the new government. It would remove the Reserve Bank&#8217;s dual-mandate, meaning it would [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":8640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[222,174],"tags":[],"class_list":["post-8639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-nz-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/8639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8639"}],"version-history":[{"count":1,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/8639\/revisions"}],"predecessor-version":[{"id":8641,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/8639\/revisions\/8641"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=\/wp\/v2\/media\/8640"}],"wp:attachment":[{"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thebuzz.apnanetwork.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}