Hon Grant Robertson
Minister of Finance
18 December 2018
Reserve Bank Act modernised to include focus on employment
The Coalition Government is delivering on its promise to modernise the Reserve Bank Act, with legislation passed by
Parliament today introducing a focus on employment outcomes alongside the current price stability mandate, Finance
Minister Grant Robertson says.
“The legislation governing the Reserve Bank is nearly 30 years old. The Coalition Government made it a priority to start
work on modernising the Act within our first 100 days, delivering on the commitment in the Coalition Agreement between
Labour and New Zealand First,” Grant Robertson said.
“While the single focus on price stability has generally served New Zealand well, there have been significant changes to
the New Zealand economy and to monetary policy practices since the Act was enacted.
“The Reserve Bank now has a dual mandate, similar to central banks in other advanced economies including Australia, the
US and Norway. Alongside price stability, the Bank has now also been tasked with supporting maximum sustainable
“The legislation today also introduces a new decision-making structure for the Reserve Bank. Instead of sole
responsibility remaining in the hands of the Governor, we are recognising the benefits of committee decision-making by
creating a seven-member Monetary Policy Committee (MPC) for monetary policy decisions like setting the Official Cash
“The appointment process for the MPC is under way. It is expected that it will become operational during the first half
of 2019. Phase Two of the Review looking into the financial policy provisions of the Reserve Bank Act is progressing,”
Grant Robertson said.