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Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Whole of government directions

172: Directions to support whole of government approach

You could also call this:

"The government can give the Reserve Bank directions to help it work with other government agencies."

Illustration for Reserve Bank of New Zealand Act 2021

You can get directions from the Minister of State Services and the Minister of Finance. They can give the Reserve Bank a direction under section 107 of the Crown Entities Act 2004. This means some rules from the Crown Entities Act 2004 apply to the Bank. You need to know that the Bank is treated differently when it gets a direction. The direction is considered to be from this Act, not the Crown Entities Act 2004. This is important for how the direction is handled. The rules from the Crown Entities Act 2004 are used to guide the direction. This includes sections 107 to 111 of that Act. These rules are applied to the Bank as if it were an independent Crown entity.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287337.

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171: Safeguarding independence of Bank, or

"Keeping the Reserve Bank Independent and Fair"

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173: Bank must comply with directions given under statutory power of direction, or

"The Bank must follow instructions given to it by the government when doing its job."

Part 4Operation of Reserve Bank
Whole of government directions

172Directions to support whole of government approach

  1. The Minister of State Services and the Minister of Finance may jointly give the Bank a direction under section 107 of the Crown Entities Act 2004.

  2. For that purpose, sections 107 to 111 of the Crown Entities Act 2004 apply to the Bank with all necessary modifications as if it were an independent Crown entity.

  3. A direction given to the Bank under this section must be treated as being a direction given under this Act (rather than the Crown Entities Act 2004).