New Zealand PM-designate Jacinda Ardern confirms review of central bank act

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The New Zealand dollar fell to 5-month lows on Tuesday as the incoming coalition government announced its policy priorities. It includes a plan to review and reform the Central Bank Act to perhaps include employment, with inflation, as a dual target.
New Zealand's Labour party leader Jacinda Ardern speaks to the media after her first caucus meeting as Prime Minister-elect at Parliament in Wellington. PHOTO: AFP

SYDNEY (REUTERS) - New Zealand prime minister-designate Jacinda Ardern said on Tuesday (Oct 24) her new Labour-led government planned to review and reform the central bank act.

Labour has already said it wants to add employment to the Reserve Bank of New Zealand's mandate, alongside inflation, to give it a dual target.

New Zealand First, the junior partner in the coalition government, also wants to broaden the central bank's focus to include greater management of the local dollar's value against other currencies.

"We have been looking at changing the objectives set out in the Reserve Bank Act," Ardern told reporters, adding that both employment and price stability would be part of that review.

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