Bollard's departure sparks monetary policy debate
The arguments for change surfaced after Reserve Bank governor Alan Bollard announced he won't be seeking a third term after his contract expires in September.
According to the National Business Review, even before Bollard's announcement Treasury had recommended to Finance Minister Bill English that rather than the central bank governor having sole authority to set the official cash rate (OCR), such decisions should be made by a committee.
Other central banks, including the Reserve Bank of Australia, US Federal Reserve and the Bank of England, all have committees to set their cash rate.
Business commentator Brian Gaynor says rather than simply aiming to keep inflation in check, the central bank should also be charged with promoting employment and economic growth as other central banks do.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] Research shows KiwiSaver is a key issue in the election; GRTV Special looks at what's on offer.](https://goodreturns.publit.io/file/c_fill,w_300,h_200/36b7de93-7b53-4a06-855a-4a8f4009a280.webp)
