Reserve Bank of New Zealand Act 1989

Monetary policy

8 Function to formulate monetary policy through MPC

(1)

The Bank, acting through the MPC, has the function of formulating a monetary policy directed to the economic objectives of—

(a)

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

(b)

supporting maximum sustainable employment.

(2)

The MPC must, in acting under this section, have regard to—

(a)

the efficiency and soundness of the financial system; and

(b)

any matter provided for in a remit under section 10(3)(d).

(3)

The function of formulating monetary policy includes deciding the approach by which the operational objectives set out in a remit are intended to be achieved.

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