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Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Independence of Bank

171: Safeguarding independence of Bank

You could also call this:

"Keeping the Reserve Bank Independent and Fair"

Illustration for Reserve Bank of New Zealand Act 2021

You know the Reserve Bank of New Zealand is independent. This means the government cannot tell the Bank what to do in certain situations. The law says a Minister cannot direct the Bank or its staff to do something that helps or hurts a particular person. This rule applies to most directions given to the Bank under this Act, including those under section 172, but not those under section 134. You should also know this rule does not limit what is said in section 77 of the Banking Act. It also does not limit any other directions given under other laws. This helps keep the Bank independent and fair.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287343.

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Money and consumer rights > Banking and loansGovernment and voting > Government departments
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Part 4Operation of Reserve Bank
Independence of Bank

171Safeguarding independence of Bank

  1. This Act does not authorise a Minister to direct the Bank, or a member, an employee, or an office holder of the Bank, to require the performance or non-performance of a particular act, or the bringing about of a particular result, in respect of a particular person or persons.

  2. This section applies to all ministerial directions given under this Act, including directions under section 172 but not including directions under section 134.

  3. Nothing in this section limits—

  4. section 77 of the Banking (Prudential Supervision) Act 1989; or
    1. any other direction given under any other Act.

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