East & Partners

RBNZ releases its SOI for next three years

(28 June 2013 – New Zealand) Following the release of the Reserve Bank of New Zealand (RBNZ)'s Statement of Intent (SOI) this week, Governor Graeme Wheeler said the Bank has outlined the Bank's priorities for the next three years.

"The New Zealand economy has been growing more rapidly than many other advanced economies, but it also faces several challenges, including the high New Zealand dollar, the effects of drought, Government fiscal consolidation, the Christchurch rebuild, and the housing market.

"The Reserve Bank's people, processes and resources are committed to a vision of being a high-performing small central bank.

"The Bank has adopted 10 strategic priorities, many of which run across several functions and departments. These priorities aim to continue to strengthen the Bank's performance, develop a more integrated approach to policy, and further improve infrastructure and reduce enterprise risk," Wheeler said.

Wheeler said the central bank is establishing a new Macro-Financial Department and will undertake more work on the interface between monetary policy and macro-prudential policy.

"The global financial crisis had challenged monetary policy frameworks, including policy objectives and the choice of policy instruments. The Bank will continue to review international experience, and ensure that monetary and macro-prudential frameworks are framed appropriately."

In addition to this, the RBNZ is progressing towards its goal of delivering a sound and comprehensive prudential regulatory regime.

"The quality of management is a critical factor in continuing to strengthen the Bank's performance culture, and this will be a priority for the years ahead."

Communicating on a broader front, using a wider range of media and an expanded on the-record speech programme will also help to strengthen performance by enhancing understanding of the Bank's policy choices, he said.

Other priorities include further investment in developing operational systems and strengthening business continuity.