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Reserve Bank of New Zealand Act 2021

Operation of Reserve Bank - Government directions to Bank

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

You could also call this:

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

Illustration for Reserve Bank of New Zealand Act 2021

The Bank has to follow directions given to it under a power of direction in this Act or another Act when it is doing its job. You need to understand that "comply" in this case means the Bank must either follow the direction or take it into account, depending on the situation. The Bank must follow these directions, but there are some exceptions, such as those outlined in sections 138 and 139, and also in section 171, and directions from a Minister must be in writing and signed by the Minister.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287346.

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Topics:
Money and consumer rights > Banking and loansGovernment and voting > Government departments
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172: Directions to support whole of government approach, or

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

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174: Procedure for ministerial directions, or

"How the Minister gives instructions to the Reserve Bank"

Part 4Operation of Reserve Bank
Government directions to Bank

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

  1. The Bank must, in performing its functions, comply with any direction given to it under a power of direction in this Act or another Act.

  2. Comply, in this section, means to give effect to the direction or to have regard to the direction, as the context requires.

  3. Subsection (1) applies—

  4. subject to sections 138 and 139 (which provide for when the Bank is not required to comply with a direction relating to dealing in foreign exchange); and
    1. except as provided in section 171; and
      1. to a direction given by a Minister, only if it is in writing and signed by a Minister entitled to give the direction.

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