Grant Robertson: Government committed to maintaining Reserve Bank independence

Author
Newstalk ZB,
Publish Date
Fri, 23 Apr 2021, 9:11AM
Photo / NZ Herald
Photo / NZ Herald

Grant Robertson: Government committed to maintaining Reserve Bank independence

Author
Newstalk ZB,
Publish Date
Fri, 23 Apr 2021, 9:11AM

Grant Robertson is defending the Government's decision to give him more power over Reserve Bank decisions about lending restrictions.

Cabinet has agreed to a give the Finance Minister some oversight in the decision-making process.

Robertson says the change will put into law, a process that's currently governed by convention and memorandums of understanding.

Robertson told Mike Yardley he's confident it won't undermine the central bank's independence.

"The decisions about what LVR rules and other restrictions will ultimately remain with the Reserve Bank Governor."

"It will simply put existing practices into law and the Reserve Bank Governor will continue to make the final decision."

Robertson says they've struck a good balance where the Finance Minister plays an appropriate role in helping define the types and the scope of lending that's done.

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