Reserve Bank of New Zealand Act 1989

Monetary policy

8 Function to formulate monetary policy through MPC


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


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


supporting maximum sustainable employment.


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


the efficiency and soundness of the financial system; and


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


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).