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Reserve Bank of New Zealand Act 2021

Central bank functions - Monetary policy - Formulating monetary policy

117: Function to formulate monetary policy through MPC

You could also call this:

"The Bank's job is to help control prices and make good money decisions."

Illustration for Reserve Bank of New Zealand Act 2021

The Reserve Bank of New Zealand has a job to do. You help the Bank understand its role in making monetary policy through the Monetary Policy Committee. The Bank's goal is to keep prices stable over time. The Bank decides how to achieve its goals, which are set out in a special document called an MPC remit. You can find more information about this in the Reserve Bank of New Zealand Act 1989.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287162.

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Money and consumer rights > TaxesMoney and consumer rights > Banking and loans
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116: Central bank functions, or

"What the Central Bank Does to Help New Zealand's Economy"

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118: MPC must formulate monetary policy in manner consistent with economic objective and MPC remit, or

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Part 3Central bank functions
Monetary policy: Formulating monetary policy

117Function to formulate monetary policy through MPC

  1. The Bank, acting through the MPC, has the function of formulating a monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices over the medium term.

  2. The function of formulating monetary policy includes deciding the approach by which the operational objectives set out in an MPC remit are intended to be achieved.

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Notes
  • Section 117(1): replaced, on , by section 8 of the Reserve Bank of New Zealand (Economic Objective) Amendment Act 2023 (2023 No 64).