Country’s fiscal, monetary policies need coordination: Popoitai

BANK of Papua New Guinea (BPNG) acting governor Benny Popoitai says the country’s fiscal and monetary policies need to be coordinated harmoniously to achieve growth.
Speaking during the swearing-in ceremony of new BPNG board, Popoitai said one complemented the other.
“The monetary policy will be used to support the fiscal policy in so far as managing the macroeconomic policy of the country,” he said.
“While the growth aspect of the monetary policy is something that we are aware of and are very mindful of, the growth stimulus will normally be from the fiscal front.”
Popoitai also acknowledged the amendments to the Central Bank Act.
“The central bank will now become a little bit more cooperative with Waigani (Government) in arriving at policy decisions and as well as discussion process,” Popoitai said.
He said the bank would also participate in the second phase of the review to be conducted by the Independent Advisory Group into the central bank.
“We are aware of the challenges that we have under the new amended act,” he said.
“We have board members who are very complacent with a lot of things that the bank is required to do from governance to policy.
“We are mindful that there needs to be some control and appreciate the fact that amending the act places limits on something’s that we can and cannot do.
“That’s important for us as a safeguard going forward that we have limits, that we have to operate within those limits.”