New Zealand's Makhlouf on Election, RBNZ, Interest Rates

The transcript discusses potential changes to the Central Bank's mandate, focusing on employment alongside inflation. It explores the idea of forming a committee for interest rate decisions, including external experts, and the merits of such a system. The Treasury's role in interest rate decisions is clarified, emphasizing the importance of price stability and the current inflation outlook.

What is the main focus of the Labour Party's proposed changes to the Central Bank's mandate?

• Eliminating the focus on employment

• Increasing the focus on employment alongside inflation

• Focusing solely on economic growth

• Reducing the focus on inflation

What is the Labour Party's suggestion regarding interest rate decisions?

• To have the governor decide alone

• To form a committee including external experts

• To let the Treasury decide

• To have a public vote

Which country is mentioned as an example of using committee-based systems for central bank decisions?

• Australia

• United States

• United Kingdom

• Canada

What is the Treasury's stance on when interest rate hikes should occur?

• They want immediate hikes

• They prefer to delay any hikes

• They leave the decision to the Reserve Bank

• They dictate the timing to the Reserve Bank

What is the most important economic factor for the Treasury according to the speaker?

• Low unemployment

• Price stability

• High inflation

• Rapid economic growth