RBNZ releases annual report

Despite the impacts of the COVID-19 pandemic, the Reserve Bank of New Zealand’s (RBNZ) latest annual report showed that the central bank had delivered on its priorities while addressing new challenges and unexpected events that mainly resulted from the pandemic.

In the annual report, RBNZ noted that the pandemic and its economic consequences had forced it to act quickly and transparently and face restrictions and other issues, including a cyber breach in January 2021 that required significant internal resources and reprioritisation of its activities.

On the bright side, despite the pandemic, the report stated that the central bank had delivered:

• A sound and effective financial system;
• Low and stable inflation and maximum sustainable employment;
• Robust and fit-for-purpose payment and settlement payments; and
• Money and cash availability for the country’s needs.

“We have worked with government and financial institutions to provide temporary financial support and to coordinate monetary and fiscal policy settings to support demand in the economy,” said RBNZ Governor Adrian Orr.

Read more: Reserve Bank reflects on policy approach, signals future direction

Aside from responding to the COVID-19 pandemic and a cyber breach, RBNZ also:

• Focused on house price sustainability in its decision-making under its financial stability mandate and through its decision-making committees, such as the Monetary Policy Committee and the Financial Stability Committee.
• Expanded its Auckland presence and developed deeper stakeholder relationships;
• Underwent significant legislative change that will alter how it operates and regulates the financial system in coming years;
• Undertook operational changes to enhance its capabilities; and
• Responded to societal challenges by launching new work streams within its Te Ao Māori, climate change, and diversity and inclusion strategies.

“At Te Pūtea Matua, we follow the concept of Matangirua ki Matangireia – working in unison, we fulfil our ultimate purpose. This enables us to achieve our vision of being a great team [and] best central bank and carry out our work with wānanga (innovation), tauira (integrity), and taura (inclusion) in mind,” Orr said.