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#
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| Office of the Minister of Finance |
Treasury advice and papers#
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| Reserve Bank of New Zealand; The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| Reserve Bank of New Zealand; The Treasury | ||
| Reserve Bank of New Zealand; The Treasury | ||
| Reserve Bank of New Zealand; The Treasury | ||
| Reserve Bank of New Zealand; The Treasury | ||
| Reserve Bank of New Zealand; The Treasury |
External advice#
- 28 Jul 2017 - Philip Turner - Reflections on the Reserve Bank of New Zealand’s Monetary Policy Round
- 23 Mar 2001 - Lars Svensson - Independent Review of the Operation of Monetary Policy in New Zealand
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| Rennie, Iain | ||
| Archer, David | ||
| Goodhart, Charles | ||
| Reserve Bank of New Zealand | ||
| The Treasury | ||
| Every-Palmer QC, James | ||
| Gai, Prasanna | ||
| Kohn, Donald | ||
| Ovenden, Piers | ||
| The Treasury |
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#
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| Independent Expert Advisory Panel | ||
| The Treasury | ||
| The Treasury |
Background papers to support the Panel#
- 21 Dec 2017 - Reserve Bank of New Zealand
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| Reserve Bank of New Zealand | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| Reserve Bank of New Zealand | ||
| The Treasury | ||
| The Treasury | ||
| Reserve Bank of New Zealand | ||
| Reserve Bank of New Zealand; The Treasury | ||
| The Treasury |
Public Submissions to the Panel#
- 1 Feb 2018 - Michael Reddell - Michael Reddell submission - Link 1
- 5 Feb 2018 - Michael Reddell - Michael Reddell submission - Link 2
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| The Treasury | ||
| Federated Farmers of New Zealand | ||
| Nana, Ganesh | ||
| Mortlock, Geof |
Documents relating to the legislative process#
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury; Minister of Finance | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury |
Documents relating to the implementation of the legislation#
- 29 Mar 2019 – Minister of Finance – Reserve Bank of New Zealand Letter of Expectations
- 25 Feb 2019 – Minister of Finance – Reserve Bank of New Zealand Board Letter of Expectations
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| The Treasury | ||
| Office of the Minister of Finance | ||
| The Treasury | ||
| Minister of State Services | ||
| The Treasury | ||
| Minister of Finance | ||
| The Treasury | ||
| The Treasury; Reserve Bank of New Zealand | ||
| The Treasury |
Other documents (including briefing and correspondence)#
- 21 Dec 2017 - Norway Royal Commission - Norges Bank Review 2017 - Official English Language Summary
- 21 Dec 2017 - Lars Svensson - What rule for the Federal Reserve? Forecast targeting
- 15 Jan 2018 - Reserve Bank of Australia - Code of Conduct for Reserve Bank Board Members
| Doc. Date Sort ascending | Creator | Title |
|---|---|---|
| Reserve Bank of New Zealand | ||
| Cabinet Office |
Papers related to the 2018 Policy Targets Agreement can be found at https://treasury.govt.nz/publications/information-release/policy-targets-agreements-information-release