Select Committee Enquiry Into Monetary Policy Makes Sense

“It is clear that the Reserve Bank’s attempts to cool the housing market by putting up interest rates is worsening the exchange rate and hurting exporters, and the CTU is encouraging the Finance and Expenditure select committee to look at a more appropriate approach to monetary policy,” CTU president Ross Wilson said.

“Dragging tax cuts, labour market deregulation and cuts to public services into the debate is mischievous. The focus should be on the housing market and the operation of monetary policy, and the select committee is an appropriate place to assess alternative options for the Reserve Bank.”

“House prices have been getting out of reach for many workers and the CTU wants all parties to take a constructive approach to any new measures which could cool the housing market over time.”

“Workers are also being affected by the loss of jobs in manufacturing, and the CTU is calling for a sense of urgency in building on the Manufacturing Vision report provided to government late last year,” Ross Wilson said.