RBNZ commences review of its monetary policy

Public consultation is open from June 1 to July 15

RBNZ commences review of its monetary policy

The Reserve Bank of New Zealand has commenced its legislated five-yearly review of its monetary policy, Remit, which guides the monetary policy committee’s (MPC) decision-making towards low and stable inflation and supporting maximum sustainable employment.  

“The Reserve Bank is seeking feedback to ensure that the Remit framework is the best it can be for our legislative purpose, and ultimately the prosperity and wellbeing of all New Zealanders,” said Adrian Orr, RBNZ governor. “This is the first review of the Remit under new legislation that was passed in 2018.”

Chief Economist Paul Conway urged stakeholders to take part in the review process.

“Do people think the inflation target is about right? How should we go about supporting maximum sustainable employment? How relevant are major economic trends under public discussion, such as house price sustainability, distributional outcomes, or climate change? We hope to see a wide range of views,” he said.

Public consultation is open from June 1 to July 15. To participate in the consultation, complete a quick survey or read the full consultation paper and submit your feedback.

Feedback received will be used to inform an assessment of any possible changes to the Remit, which will again be consulted on later in 2022. RBNZ said it will then also seek views on the MPC’s Charter – the document that sets out the committee’s meeting processes.

The Reserve Bank’s advice will go to the minister of finance next year for a decision on if and how the Monetary Policy Remit and Charter will change from 2023 to 2028.