15 Aug 2013

Treasury suggests review of Reserve Bank decision making

2:37 pm on 15 August 2013

The Treasury has suggested the Government review whether decisions on interest rates should be made by the Reserve Bank governor alone.

The reference to the Treasury view is included in a Reserve Bank board paper obtained by the Green Party under the Official Information Act.

Greens co-leader Russel Norman says making the board responsible for the decision should mean interest rates are not changed too soon.

Russel Norman says New Zealand is one of only a few countries that has a single person deciding whether interest rates should rise or fall, or stay the same.

A spokesperson for Finance Minister Bill English says the Government has no intention of following up the suggestion.

A similar proposal was considered by the former Labour Government some years ago and rejected.