The Reserve Bank should be given more tools to deal with the high value of the New Zealand dollar, Labour MP David Parker said today.

The kiwi has climbed sharply following the US Federal Reserve's latest stimulus package announcement.

Mr Parker, Labour's finance spokesman, said under current laws the Reserve Bank had to focus on inflation.

But he added that its objectives needed to be broadened "so that the Reserve Bank is required to address the exchange rate and employment in New Zealand with the same priority given to that as controlling inflation''.


Mr Parker said if the Reserve Bank had that objective, it would have all the powers it needed to address "our over-inflated currency".