RBNZ says a Terms of Reference for a review of the Reserve Bank Act was released
Finance Minister Grant Robertson and Reserve Bank Governor Grant Spencer have signed an unchanged Policy Targets Agreement (PTA), which sets out specific targets for maintaining price stability.
The Minister also released the Terms of Reference for a review of the Reserve Bank Act, RBNZ said.
The PTA, effective immediately, is the same as that signed by Spencer and the previous Finance Minister Steven Joyce, which has been in effect since Spencer’s six-month term as governor began on Sept. 27.
The PTA requires the Reserve Bank to keep future CPI inflation outcomes between 1% and 3% on average over the medium term, with a focus on keeping future average inflation near the 2% target midpoint.
Spencer said: “The renewed PTA will continue to provide continuity, consistency and stability for the monetary policy target during the period of review of the monetary policy provisions of the Reserve Bank Act, and ahead of the appointment of a new Governor.”
Spencer said the bank welcomes the review of the Reserve Bank Act and will work with the treasury on the review.
“The Reserve Bank has been subject to several reviews in the past.
The Terms of Reference state that the operational independence of the Reserve Bank remains paramount and will be protected,” he said.
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The Minister also released the Terms of Reference for a review of the Reserve Bank Act, RBNZ said.
The PTA, effective immediately, is the same as that signed by Spencer and the previous Finance Minister Steven Joyce, which has been in effect since Spencer’s six-month term as governor began on Sept. 27.
The PTA requires the Reserve Bank to keep future CPI inflation outcomes between 1% and 3% on average over the medium term, with a focus on keeping future average inflation near the 2% target midpoint.
Spencer said: “The renewed PTA will continue to provide continuity, consistency and stability for the monetary policy target during the period of review of the monetary policy provisions of the Reserve Bank Act, and ahead of the appointment of a new Governor.”
Spencer said the bank welcomes the review of the Reserve Bank Act and will work with the treasury on the review.
“The Reserve Bank has been subject to several reviews in the past.
The Terms of Reference state that the operational independence of the Reserve Bank remains paramount and will be protected,” he said.
Related stories:
Dollar hits two-week high against Pound
Strong economy delivers $4.1 billion surplus
