VIEW: Westpac back the economic credentials....>

RBNZ: VIEW: Westpac back the economic credentials of all three external MPC

members, but write that "how the three externals might shift the RBNZ's

decisions is another matter - are they likely to conclude that interest rates

are currently too high, too low, or about right? We do not really know. Only

Buckle has a track record on monetary policy that we are aware of - in a

December 2018 paper he described New Zealand's history of inflation targeting as

a success, and was uncertain about the recent changes to the RBNZ Act. We do not

know Harris, but we note that New Zealand's union movement has been much less

favourably disposed towards inflation targeting. To the best of our memory, the

unions' critique has often been that monetary policy has been too tight for the

real economy."