1A Purpose

(1)

The purpose of this Act is to promote the prosperity and well-being of New Zealanders, and contribute to a sustainable and productive economy, by providing for the Reserve Bank of New Zealand, as the central bank, to be responsible for—

(a)

formulating and implementing monetary policy directed to the economic objectives set out in subsection (1A), while recognising the Crown’s right to determine economic policy; and

(b)

promoting the maintenance of a sound and efficient financial system; and

(c)

issuing bank notes and coins in New Zealand to meet the needs of the public; and

(d)

carrying out other functions, and exercising powers, specified in this Act.

(1A)

The economic objectives are—

(a)

achieving and maintaining stability in the general level of prices over the medium term; and

(b)

supporting maximum sustainable employment.

(2)

This section does not limit the functions or powers given to the Bank by any other enactment.

Section 1A: inserted, on 10 September 2008, by section 5 of the Reserve Bank of New Zealand Amendment Act 2008 (2008 No 59).

Section 1A(1): replaced, on 1 April 2019, by section 4 of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).

Section 1A(1A): inserted, on 1 April 2019, by section 4 of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).