Peters Pushes for Dual Mandate Return to RBNZ

NZ First leader Winston Peters is calling for the Reserve Bank of New Zealand (RBNZ) to return to its dual mandate, which includes both inflation targeting and promoting maximum sustainable employment. Peters believes that this approach helped New Zealand achieve full employment in the past and would be beneficial today.

Peters mentioned Iceland as an example of a country with high levels of employment, saying 'that's what this election is all about.' He also criticized the current system, stating that Reserve Bank Governor Adrian Orr would keep inflation under control but not worry about job losses, saying 'doesn't matter if 100,000 people lose their job, she won't lose hers.'

The RBNZ currently targets an inflation rate of between 1% and 3%, with a specific target of 2%. The latest annual inflation rate was 4.1% in the June quarter. Peters said removing the employment mandate was a 'dead rat' he had to swallow.