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Phase 1 of the Reserve Bank Act Review

Phase 1 of the of the Review concluded with the Reserve Bank of New Zealand (Monetary Policy) Amendment Act coming into force on 1 April 2019.

This Act implemented several changes to New Zealand’s monetary policy framework. These included:

  • amending the objective of monetary policy to require consideration of maximum sustainable employment alongside price stability in monetary policy decision making, and
  • instituting a monetary policy committee (MPC) to take decisions on monetary policy.

The Monetary Policy Committee is a committee of five to seven members, appointed by the Minister of Finance on advice of the Board of the Reserve Bank, and is responsible for formulating monetary policy in New Zealand. Its members include the Governor and Deputy Governor of the Reserve Bank; one or two other members of Bank staff; and two or three external members who provide outside challenge and expertise. The first members of the MPC were announced on 29 March 2019. Further details about the current members and the MPC are available on the Reserve Bank’s website on the Monetary Policy Committee page

The Act also introduced three new instruments to support the monetary policy framework. These are:

  • The remit, which sets the operational objectives of monetary policy (for example, specifying a numerical inflation target).
  • The charter, which sets the decision making process and transparency requirements for the MPC.
  • The code of conduct, which sets out the minimum standards of ethical and professional conduct that must be adhered to by members of the MPC.

These documents, and further details about New Zealand’s amended monetary policy framework, are available on the Reserve Bank’s website on the Monetary policy framework page

A graphic summary of the changes made during Phase 1 of the Review can be found at Modernising New Zealand’s Monetary Policy Framework: Phase One Cabinet Decisions

Proactive release of information

The Treasury has made public a number of documents relating to the decisions made during Phase 1 of the Review, the passage of the legislation and the implementation of the Act. 


For general enquiries about Phase 1 of the Reserve Bank of New Zealand Act Review, please email  The Treasury will respond to enquiries made through this channel as part of its role as the secretariat for the Review.

All media enquiries should be directed to


Last updated: 
Tuesday, 16 April 2019