Reserve Bank of New Zealand Act 1989

10 Remit for MPC

(1)

The Minister must, after having regard to remit advice, issue a remit for the MPC (the remit).

(2)

The remit must set out operational objectives for carrying out the function of formulating monetary policy.

(3)

The remit may specify or provide for the operational objectives in any way that the Minister thinks fit, including by specifying or providing for 1 or more of the following matters:

(a)

a target or targets for an economic objective:

(b)

a framework for weighting the economic objectives:

(c)

defining any matters in connection with an economic objective:

(d)

a requirement for the MPC to have regard to 1 or more matters in connection with seeking to achieve an economic objective.

(4)

A matter under subsection (3) must not be inconsistent with an economic objective.

(5)

The Minister must take all reasonable steps to ensure that a remit is in force at all times (whether the remit is issued by the Minister under this section or clause 3 of Schedule 1 or is in force under an Order in Council made under section 12, clause 4 of Schedule 1, or clause 6 of Schedule 2).

Section 10: replaced, on 1 April 2019, by section 8 of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).