The New Zealand government have formally introduced a bill in parliament to alter the mandate of the Reserve Bank of New Zealand.
- To add employment to the central bank's monetary policy mandate, alongside inflation targeting.
- The government flagged this change in the lead up to the election last year and since winning office.
Its not a surprise. Nor will it impact policy in the short term. Back in March, new RBNZ governor Adrian Orr agrred with Finance Minister Grant Robertson that maximising sustainable employment would be a goal alongside inflation targeting - this was encapsulated in the policy agreement covering Orr's five-year term.
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The ICYMI part of the headline - the news of the introduction of legislation into the NZ parliament crossed the NZ afternoon Monday.
RBNZ Gov. Orr
