Adrian Orr: In service to society - New Zealand's revised monetary policy framework and the imperative for institutional change

Speech by Mr Adrian Orr, Governor of the Reserve Bank of New Zealand, at an event, Wellington, 29 March 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
29 March 2019


Tēna koutou katoa.

Thank you for joining us today to discuss New Zealand's new monetary policy framework.

The recent amendment to the Reserve Bank's legislation sets up a Monetary Policy Committee that is responsible for a new dual mandate of keeping consumer price inflation low and stable, and supporting maximum sustainable employment.

The Committee's deliberation process will ensure that all decisions benefit from a diverse range of views, and offer greater transparency and accountability to monetary policy decisionmaking.

Before I outline the features of the new framework and its underlying principles, I would like to paint the backdrop to this institutional change.

The business of central banking is evolving as circumstances change. Some of the change is favourable, some is confronting.