Reserve Bank of New Zealand Act 2021

Central bank functions - Monetary policy - Order providing for different economic objective or objectives

125: Order providing for different economic objective or objectives

You could also call this:

"Temporary change to the country's economic goals"

Illustration for Reserve Bank of New Zealand Act 2021

The Governor-General can make an order that tells the Monetary Policy Committee to create, and the Reserve Bank to use, a monetary policy for one or more economic goals for up to 12 months. You can think of economic goals as targets the government wants to achieve, like keeping prices stable. The order can add new goals or replace the goal already stated in section 9(1)(a). When the order is in place, the Monetary Policy Committee and the Reserve Bank must follow the new economic goals. If the order says so, they must ignore the original goal stated in section 9(1)(a). This order is a type of law called secondary legislation, which has its own rules for publication, as explained in Part 3 of the Legislation Act 2019. The Governor-General makes this order with advice from the Minister, and it can only last for up to 12 months. You can find more information about how these orders are published and what they mean for the country's economy.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287167.

This page was last updated on 1 January 2026 — View changes

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124: Other matters relating to MPC remit, or

"More details about the MPC remit are in Part 1 of Schedule 3"

126: Minister must consider replacing or amending MPC remit, or

"The Minister must think about changing the rules for the Reserve Bank."

Part 3Central bank functions
Monetary policy: Order providing for different economic objective or objectives

125Order providing for different economic objective or objectives

The Governor-General may, by Order in Council, on the advice of the Minister, direct the MPC to formulate, and the Bank to implement, monetary policy for 1 or more economic objectives for a period not exceeding 12 months that is specified in the order.
The economic objective or objectives may be in addition to or instead of the economic objective specified in section 9(1)(a).
While the Order in Council is in force,—
the MPC must formulate, and the Bank must implement, monetary policy in accordance with the economic objective or objectives specified in the Order in Council; and
the MPC and the Bank must disregard the economic objective specified in section 9(1)(a) if so required by the Order in Council.

An Order in Council made under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare

1989 No 157 s 12

Notes

Section 125(2): replaced, on 20 December 2023, by section 11(1) of the Reserve Bank of New Zealand (Economic Objective) Amendment Act 2023 (2023 No 64).
Section 125(3)(b): amended, on 20 December 2023, by section 11(2) of the Reserve Bank of New Zealand (Economic Objective) Amendment Act 2023 (2023 No 64).