IMF says ‘ways to innovate’ on monetary policy

The International Monetary Fund has admitted the Kiwi dollar is overvalued by up to 15 per cent and suggested, while care must be taken there is room for innovation on monetary policy, says Labour’s Finance spokesperson David Parker.

“The IMF has said  the dollar is 5 to 15 per cent overvalued. That’s crippling for exporters and it’s holding our economy back.

“The IMF has now admitted there is scope to change the Reserve Bank Act with head of the IMF mission Brian Aitken saying, ‘There might be ways to innovate but you would want to be careful’.

“That will be news to the likes of John Key, Bill English and Steven Joyce who have said any changes to the Reserve Bank Act would be ‘voodoo economics’.

“Labour is committed to upgrading our out-of-date Reserve Bank Act as part of our Economic Upgrade. Our policy, which will be released soon, will be innovative and carefully crafted,” says David Parker.

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