Labour Vows to Restore Dual RBNZ Mandate, Balance Books by 2029

Labour Party leader Chris Hipkins has announced plans to restore the Reserve Bank of New Zealand's (RBNZ) dual monetary policy mandate, targeting both inflation and maximum sustainable employment. This move would see the RBNZ aim for price stability between 1% and 3%, with a specific target of 2%, as well as supporting maximum sustainable employment.

Labour has also pledged to balance the books and return to surplus by 2029/30, using the conventional Operating Balance Before Gains and Losses (OBEGAL) measure. Finance Minister Nicola Willis introduced OBEGALx, which excludes the Accident Compensation Corporation, but Labour will revert back to the original measure.

Labour's finance spokesperson Barbara Edmonds emphasized that they will not balance the books by shrinking the economy, as previous governments have attempted. Instead, they aim to reduce net debt down to 20% of GDP over time and prioritize investments supporting a strong growing economy.

The Labour Party also plans to establish an independent Parliamentary Budget Office to analyze government finances and election commitments, strengthening scrutiny of government spending.