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Current affairs.
“Agriculture Minister Jim Anderton says we should relax about the current inflation rate. Speaking today on TVOne’s “Agenda” Mr Anderton said that if we weren’t careful we could throw the baby out with the bath water.
“If you look at the reality that we're in now, we've got an average growth rate of about 3%, on our historical standards that’s actually very high,” he said.
“Our inflation rate is about 2.5% now if you look at those combinations it wouldn’t exactly be a disastrous condition for everybody, so my view is we should relax a bit.”
Asked if he wanted to see changes to the Reserve Bank Act, he said “if you're not careful you can get fixated on one objective and if you use one instrument like high interest rates then that tends to impact on our tradable goods sector.”
Mr Anderton said that within Cabinet he expressed his view on the Bank and “full and frank” discussions took place.” agendatv.co.nz, 27/06/2007