The Reserve Bank of New Zealand – Te Pūtea Matua has outlined its commitment and key priorities as kaitiaki (guardian) of New Zealand's financial system in its Statement of Intent (SOI) for 2021 – 2024, released today.
Reserve Bank Governor Adrian Orr said Te Pūtea Matua is evolving and transforming into a more modern, agile, and effective central bank to fulfil its ultimate purpose of Toitu te Ōhanga, Toitu te Oranga (enabling the prosperity and wellbeing of all New Zealanders).
The Reserve Bank delivers this purpose through its mandate of operating monetary policy to maintain low and stable inflation and contribute to maximum sustainable employment, promoting a sound and efficient financial system, meeting the public's cash needs, and overseeing effective payments systems.
"We approach our mandate in a holistic manner by looking at a broad range of challenges and opportunities that impact our effectiveness as kaitiaki. We see progressing initiatives such as Te Ōhanga Māori, Climate Risk, and South Pacific Remittances as key to our purpose and vision," Mr Orr said.
"Over the near-term, we will continue to make investments in our people, processes and systems through our Transformation Programme. This will enable us to build capability for the future, ensuring that we are well-equipped to perform our role."
The Reserve Bank's modernisation is being driven by legislative reform. The new Reserve Bank of New Zealand Act, due for Royal Assent later this year, sets out the Reserve Bank's future operational and governance arrangements. The new Deposit Takers Act, expected to pass in 2023, will introduce a deposit insurance scheme and will modernise the Reserve Bank's regulatory processes.
"We remain prepared to navigate the challenges presented by our economic and financial environment. We have a clear purpose, vision and values, which will enable us to assist the longer-term wellbeing of New Zealanders, now and into the future," Mr Orr said.
