19 Effect of directions on operational objectives


This section applies if the Governor considers that giving effect to a direction under section 17 or 18 (while not being inconsistent with the economic objectives of monetary policy) would be inconsistent with 1 or more operational objectives set out in a remit.


The Governor may, by notice in writing,—


advise the Minister that the Bank will, in giving effect to the direction, be unable to give effect to those operational objectives; and


request that the operational objectives be amended or replaced.


The Governor may only give a notice with the approval of the MPC.


If a notice is given,—


the MPC and the Bank are not required to give effect to the existing operational objectives:


the Minister must, within 1 month after the notice is given,—


make a recommendation under clause 6 of Schedule 2 for the purpose of replacing a remit to amend or replace the operational objectives; or


give advice under section 12 for the purpose of amending or replacing the operational objectives in a remit that is included in an order in force under that section.


Subsection (4) does not apply if the Minister withdraws the direction.

Section 19: replaced, on 1 April 2019, by section 9 of the Reserve Bank of New Zealand (Monetary Policy) Amendment Act 2018 (2018 No 59).