Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Dealing in foreign exchange

138: Effect of directions on monetary policy

You could also call this:

"How the Reserve Bank follows directions that affect New Zealand's money and economy"

Illustration for Reserve Bank of New Zealand Act 2021

You can find information about the Reserve Bank of New Zealand Act 2021 on the New Zealand legislation website. The Bank has a role in dealing with foreign exchange. If the Bank thinks following a direction under section 134 would not align with its economic objective, it can advise the Minister in writing. The Bank can only give this notice if the Monetary Policy Committee agrees. This is how the Bank makes decisions about giving effect to directions. The Bank's decisions are important for New Zealand's economy. The law says what the Bank can and cannot do when making these decisions. You can read more about the Reserve Bank of New Zealand Act 2021 to learn more about the Bank's role. The Bank's main goal is to support New Zealand's economic wellbeing.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287185.

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

Topics:

Money and consumer rights > TaxesMoney and consumer rights > Banking and loansGovernment and voting > Government departments

137: Effect of Bank’s notice on duty to give effect to operational objectives, or

"What happens when the Bank gets a special notice about its goals"

139: Effect of Bank’s notice on duty to comply with Minister’s direction, or

"The Bank's notice can stop it from having to follow the Minister's instructions."

Part 3Central bank functions
Foreign exchange: Dealing in foreign exchange

138Effect of directions on monetary policy

If the Bank considers that giving effect to a direction under section 134 would be inconsistent with the economic objective, the Bank may, by notice in writing, advise the Minister that the MPC and the Bank do not propose to give effect to the direction.
The Bank may only give a notice with the approval of the MPC.

Compare

1989 No 157 s 20(1), (2)

Notes

Section 138(1): amended, on 20 December 2023, by section 13 of the Reserve Bank of New Zealand (Economic Objective) Amendment Act 2023 (2023 No 64).