In a speech to the Canterbury Employers’ Chamber of Commerce, Dr Brash said he was doing this to dispel criticism that the Reserve Bank “is insufficiently in touch with the ‘real world’, or that it is excessively ‘ivory tower’ or academic.” Dr Brash also said he wanted to show that, while the Reserve Bank Act requires that he alone makes the Reserve Bank’s monetary policy decisions, considerable care had been taken to create processes and structures to ensure that he receives comprehensive and balanced advice before decisions are taken.
Dr Brash told the gathering that an eight-week process is used in preparing the Bank’s quarterly Monetary Policy Statements and making the interest rate decisions that go with that.
As the speech outlined:
Dr Brash said that this framework had evolved over recent years, with improvements being constantly sought. For that reason, the Reserve Bank was looking forward to the results of the review of monetary policy being conducted by Professor Lars Svensson in order to identify what further improvements could be made.
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