Thomas Coughlan: NZ Herald political editor on Nicola Willis reducing the Reserve Bank's funding - Heather du Plessis-Allan Drive

The Finance Minister has unveiled a major reduction to the Central Bank's planned spending.

The Government and the Reserve Bank have agreed to reduce operating expenses by a quarter in the coming year.

They've signed a five-year funding agreement, allowing $750 million of operating expenses, well below the $1 billion the Bank was asking for.

NZ Herald political editor Thomas Coughlan unpacks the announcement further.

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