9 Sep 2008

Change in monetary policy process wanted

11:31 am on 9 September 2008

Manufacturers and exporters want an overhaul of the way the Reserve Bank sets monetary policy.

The New Zealand Manufacturers & Exporters Association says the Reserve Bank should be forced to take exchange rate stability into consideration when setting interest rates.

Unless a way is found to stabilise the dollar, association chief executive John Walley says the tradeable sector will continue through a boom-and-bust cycle, with each down-turn being worse than the last.

Parliament's Finance and Expenditure Select Committee is currently considering submissions on the way the Reserve Bank conducts monetary policy.