Assistant governor says RBNZ should not be target of exchange rate ‘angst’
The Reserve Bank of New Zealand (RBNZ) should not be criticised for failing to correct the high value of the New Zealand dollar, according to John McDermott, an assistant governor at the central bank.
Speaking at an exchange rate forum organised by the RBNZ, McDermott said intervening in the exchange rate would make policy "unjustifiably loose", damaging many years of work to gain credibility. Furthermore, he added, there were many factors at play in the high exchange rate – pointing to
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