The Reserve Bank of New Zealand

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New Zealand – The Reserve Bank of New Zealand (RBNZ)

RBNZ Structure

Unlike all other major central banks that we have discussed so far, the RBNZ has a structure that gives the decision-making power on monetary policy to the central bank governor alone. The rest of the members act only as advisors to the governor.

They typically meet 8 times per year.


RBNZ Mandate

Its mandate is to maintain price stability and avoid instability of economic output, interest rates, and exchange rates.

The RBNZ has an inflation target of between 1% and 3%. It focuses hard on this target because failure to meet it could result in the governor of the RBNZ getting fired by the government.

www.rbnz.govt.nz