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Information release

Phase 1 Reviewing the Reserve Bank of New Zealand (RBNZ) Act - Proactive Release

Issue date: 
Monday, 26 March 2018
Corporate author: 
View point: 

In 2017, the Government announced it would undertake a Review of the Reserve Bank of New Zealand Act 1989 (the Review) to modernise the monetary and financial stability policy framework. The Review is being conducted in two phases. Phase 1 implemented changes to the monetary policy role of the Reserve Bank of New Zealand, and Phase 2 is considering changes to Reserve Bank governance.

Phase 1 of the Review resulted in the Reserve Bank of New Zealand (Monetary Policy) Amendment Act (the Act) gaining Royal assent on 20 December 2018. The Act:

  • amended the objective of monetary policy to require consideration of maximum sustainable employment alongside price stability in monetary policy decision making, and
  • instituted a monetary policy committee (MPC) to take decisions on monetary policy.

Following Royal assent of the Act, the Minister of Finance appointed the members of the MPC; issued a remit to set the objectives of monetary policy; and issued a charter to govern the decision making process and transparency of the MPC. The full provisions of the Act came into force on April 1 2019, at which point the MPC became responsible for the formulation of monetary policy.

The following documents were produced during the process of Phase 1 of the Review, including the passage of the legislation and its implementation. They are grouped as follows:

  • Documents featuring substantive policy decisions
  • Treasury policy advice
  • Externally commissioned advice to support the Review
  • Documents relating to the Independent Expert Advisory Panel
    • Final report and minutes of the Panel
    • Background papers to support the Panel
    • Public submissions to the Panel
  • Documents relating to the legislative process
  • Documents relating to the implementation of the legislation
  • Other documents, including briefing and correspondence

The Treasury is releasing these documents to be transparent and improve public understanding of the reforms made through the Review process. The documents have been released in stages, with the final release of documents following the issue of the remit and charter in February 2019 and the appointment of MPC members in March 2019.

Documents featuring substantive policy decisions

Key documents featuring substantive policy decisions
DateCreatorTitle
23-02-2018 The Treasury; The Treasury
26-03-2018 The Treasury; The Treasury
26-03-2018 The Treasury; The Treasury
12-04-2018 The Treasury; The Treasury
02-05-2018 The Treasury; The Treasury
21-12-2017 The Treasury; Minister of Finance
06-12-2018 The Treasury; The Treasury

Treasury advice and papers

Key Treasury policy advice
DateCreatorTitle
01-11-2017 The Treasury; The Treasury
30-11-2017 The Treasury; The Treasury
17-12-2017 The Treasury; The Treasury
21-12-2017 The Treasury
06-03-2018 The Treasury; The Treasury
22-03-2018 The Treasury; The Treasury
27-07-2018 The Treasury; The Treasury
15-08-2016 The Treasury; The Treasury

External advice

Documents relating to the Independent Expert Advisory Panel (IEAP)

The Independent Expert Advisory Panel (the Panel) was established to provide advice on the changes to the Act. The members of the Panel were Suzanne Snively, Dr Girol Karacaoglu, and Dr Malcolm Edey. The Panel met with Officials from the Treasury and the Reserve Bank several times, and considered papers and opinions provided by Officials.

The Panel’s advice was provided in a final report regarding the specification of the objectives of monetary policy; the decision-making procedures for monetary policy (including the communication of these decisions to the wider public); and implications for the role of the Board.

The Panel met for meetings on two occasions: Wednesday 20 December 2017 and Wednesday 31 January 2018. The final report and minutes of the two meetings, the background papers to support the Panel, and public submissions to the Panel, can be found below. Note these papers were provided to aid discussion and do not represent final advice.

Final report and minutes of meetings

Key documents IEAP
DateCreatorTitle
20-12-2017 The Treasury; The Treasury
31-01-2018 The Treasury; The Treasury
07-03-2018 Independent Expert Advisory Panel

Background papers to support the Panel

Other papers
DateCreatorTitle
15-12-2017 The Treasury; The Treasury
20-12-2017 The Treasury; The Treasury
20-12-2017 The Treasury; The Treasury
20-12-2017 Reserve Bank of New Zealand; Reserve Bank of New Zealand
20-12-2017 The Treasury; Reserve Bank of New Zealand; Reserve Bank of New Zealand; The Treasury
21-12-2017 Reserve Bank of New Zealand; Reserve Bank of New Zealand
15-01-2018 The Treasury; The Treasury
31-01-2018 The Treasury; The Treasury
31-01-2018 The Treasury; The Treasury
31-01-2018 The Treasury; The Treasury
31-01-2018 The Treasury; The Treasury
26-03-2018 Reserve Bank of New Zealand; Reserve Bank of New Zealand
26-03-2018 The Treasury; The Treasury

Public Submissions to the Panel

Public consultation
DateCreatorTitle
30-01-2018 Mortlock, Geof
07-02-2018 Nana, Ganesh
19-02-2018 Federated Farmers; Federated Farmers
22-02-2018 The Treasury; The Treasury

Documents relating to the legislative process

Documents relating to the implementation of the legislation

Other papers
DateCreatorTitle
23-05-2018 The Treasury; The Treasury
29-06-2018 Reserve Bank of New Zealand; The Treasury
26-07-2018 The Treasury; The Treasury
13-08-2018 Minister of Finance; Minister of Finance
22-08-2018 The Treasury; The Treasury
27-08-2018 Minister of State Services
06-09-2018 The Treasury; The Treasury
20-09-2018 Office of the Minister of Finance; Office of the Minister of Finance
04-10-2018 The Treasury; The Treasury
04-10-2018 The Treasury; The Treasury
09-10-2018 The Treasury; The Treasury
04-12-2018 The Treasury; The Treasury
14-02-2019 The Treasury; The Treasury
26-02-2019 The Treasury; The Treasury

Other documents (including briefing and correspondence)

Other papers
DateCreatorTitle
16-11-2017 The Treasury; Cabinet Office
26-02-2018 Reserve Bank of New Zealand; Reserve Bank of New Zealand

Papers related to the 2018 Policy Targets Agreement can be found at https://treasury.govt.nz/publications/information-release/policy-targets-agreements-information-release

 

 

Last updated: 
Friday, 5 April 2019