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New Zealand's incoming PM wants to change the central bank's mandate

  • New Zealand's incoming prime minister Jacinda Ardern wants to add employment and inflation to the central bank's focus

New Zealand prime minister-designate Jacinda Ardern said on Tuesday her new Labour-led government planned to review and reform the central bank act.

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Labour has already said it wants to add employment to the Reserve Bank of New Zealand's mandate, alongside inflation, to give it a dual target.

New Zealand First, the junior partner in the coalition government, also wants to broaden the central bank's focus to include greater management of the local dollar's value against other currencies.

"We have been looking at changing the objectives set out in the Reserve Bank Act," Ardern told reporters, adding that both employment and price stability would be part of that review.