Recommended Sponsor - Buy Original Artwork Directly from the Artist

Source: Reserve Bank of New Zealand

27 June 2023 – The Reserve Bank acknowledges the new Remit for the Monetary Policy Committee (MPC) issued by the Minister of Finance.

The MPC Remit sets the operational objectives for monetary policy. The new Remit retains an inflation target of 1% to 3% over the medium-term, with a focus on the 2% mid-point, and also the objective to support maximum sustainable employment.

“This largely represents a continuation of the current monetary policy regime, with some changes that support more clarity for the monetary policy objectives,” RBNZ Board Chair Neil Quigley says.

The Reserve Bank provided advice to the Minister as part of its statutory requirement to review the Remit. This incorporated feedback from 2 public consultations, findings from surveys and public workshops, and relevant analysis on key monetary policy issues.

“We would like to thank all those who contributed to the review through public submissions and other forms of engagement,” Mr Quigley says.

The MPC and the Minister also agreed to update the MPC Charter as part of this review.

The new Charter reconfirms that the MPC decision-making process should focus on seeking consensus where possible. The MPC still retain the option of taking a vote, for example on the Official Cash Rate, if a consensus is not reached.

The new Charter also clarifies expectations of MPC members when speaking publicly on issues relevant to monetary policy, as well as including communication requirements relating to processes followed in reaching monetary policy decisions, such as around the considerations in the choice of monetary policy tools.

More information

Questions and answers

Monetary Policy Framework (includes new MPC Remit and Charter)

Monetary Policy Committee Remit Review – Supporting New Zealand’s Economic Stability | Toitū te Ōhanga