RBNZ Considers Restoring Dual Mandate Amid Economic Concerns

The Reserve Bank of New Zealand (RBNZ) has been considering restoring its dual mandate, which would see it focus on both inflation targeting and economic growth. According to Westpac, this change could have significant implications for monetary policy in the country.

In a recent report, Westpac outlined the mechanics of how the RBNZ's dual mandate could be restored, including changes to the Bank's charter and the introduction of new instruments. The report also discussed possible implications, such as a shift towards more accommodative monetary policy.

Westpac noted that restoring the dual mandate would require significant changes to the RBNZ's framework, but argued that it could help to address issues related to economic growth and employment in New Zealand.