Ex-RBNZ’s Reddell: New Zealand Govt may fast-track RBNZ reforms ahead of law changes

Former RBNZ official Michael Reddell said on Friday, via Reuters, New Zealand’s new government could make changes to the RBNZ as early as March by appointing a reforming governor and making a prompt shift to policy settings.

Key Quotes:

“If you get a new governor who is broadly sympathetic to the direction you want to go in, you can write quite a lot into the policy target agreement.”

“To my mind, that’s going to be one of the tests as to how serious they are, as to whether they really want to change the bank.”

Meanwhile, a source familiar with the matter said the government will stick to the current policy target agreement at least until a new RBNZ governor is appointed, Reuters reports.