Sharechat Logo

Treasury Secretary to sit in on RBNZ monetary policy reviews

Tuesday 16th October 2018

Text too small?

Treasury secretary Gabriel Makhlouf will sit in on the Reserve Bank's monetary policy reviews from this month, pre-empting a legislative change. 

The central bank extended the invitation in July for a Treasury observer, and Makhlouf formally accepted on Oct. 3. His acceptance included a confidentiality protocol on how a Treasury official would go about sharing information not officially communicated and deemed to be inside information.

The interim Treasury observer arrangements effectively introduce an aspect of looming legislative changes to formalise a decision-making committee on monetary policy with external members. Former governor Graeme Wheeler introduced an informal committee made up of his deputies during his five-year tenure. 

The Reserve Bank of New Zealand (Monetary Policy) Amendment Bill is currently before Parliament's finance and expenditure committee, which is due to report back by Dec. 3. 

The government decided to introduce a Treasury observer to the meetings to improve the information flow between the Reserve Bank and Treasury and the linkages between fiscal and monetary policy. 

National finance spokeswoman Amy Adams outlined her concerns about the Treasury observer during the bill's first reading. She said there would need to be a high degree of probity and transparency around the arrangements to make sure committee members weren't accused of political interference. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar falls against Aussie after strong Oz jobs data
Helen Clark, Don McKinnon front NZ chapter of US think-tank
Fuji Xerox auditor keeps name suppression due to reserved appeal decision
ComCom to eye fuel profits by region, activity
TIL Logistics director Kern steps down and sells out
Turners drops Buy Right Cars moniker in single brand strategy
Mercury, Genesis signal weaker earnings on low lakes, gas shortage
Wrightson gets OIO approval to sell seeds unit, still mulling size of return
Fletcher unit blows whistle on attempted price-fixing in Christchurch
Tourism Holdings falls 24% on open after lowering guidance

IRG See IRG research reports