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RBNZ faces communication challenges in new policy framework
Some observers think new monetary policy committee may add confusion
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The Reserve Bank of New Zealand’s new policy framework and communication strategy have divided opinion, with some saying they have created unnecessary uncertainty. Others say the criticisms are overblown.
Earlier in 2019, the RBNZ adopted a new monetary policy framework as part of the review of the central bank act. This includes a dual mandate that adds maximum sustainable employment to price stability. Additionally, it created a monetary policy committee to foster a more collegial decision
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