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Reserve Bank of New Zealand Act 2021

Central bank functions - Foreign exchange - Dealing in foreign exchange

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

You could also call this:

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

Illustration for Reserve Bank of New Zealand Act 2021

If you get a notice under section 136, the Monetary Policy Committee and the Bank do not have to follow the current operational objectives. You need to know the Minister must change or replace the objectives within one month after the notice is given. The Minister does this by amending or replacing the Monetary Policy Committee remit. If the Minister withdraws the direction, this section does not apply to you. The Minister's action can change what the Bank and the Monetary Policy Committee have to do. You can find more information about this in the link to section 136. The law says the Minister has to act quickly when a notice is given. This helps the Bank and the Monetary Policy Committee know what to do. The Minister's changes can affect how the Bank and the Monetary Policy Committee work.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS289819.

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

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

  1. If a notice is given under section 136, the MPC and the Bank are not required to give effect to the existing operational objectives.

  2. The Minister must, within 1 month after the notice is given under section 136, amend or replace the MPC remit to amend or replace the operational objectives.

  3. This section does not apply if the Minister withdraws the direction.

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