Reserve Bank of New Zealand Act 2021

This page explains the changes our foundational legislation, the new Reserve Bank of New Zealand Act, will bring once it commences in July 2022.

Where we are right now

The Reserve Bank of New Zealand Act 2021 (the 2021 Act) passed into law in August 2021.

We are now working to implement the changes, including supporting a transition board paving the way for our new governance arrangements taking effect on 1 July 2022.

Read more about the transition board

Why we need a new Act

Our previous legislation, the Reserve Bank of New Zealand Act 1989, was more than 30 years old. The new Act aims to modernise how we operate and are governed. It increases our accountability and transparency, and bring us closer to what is required of Crown entities in terms of decision-making, reporting and external monitoring.

Strengthening Nga PÅ«take — our roots — will ensure we continue our evolution into a modern, agile and transparent central bank working to enable all New Zealanders' future prosperity and economic wellbeing.

This video explains what’s changing and how we’re working to implement our new Act.

What's changing

The main changes include:

  • establishing a new statutory governance board responsible for all decision-making (except decisions made by the Monetary Policy Committee). The Governor will be a member of the board as well as Chief Executive
  • establishing a new decision-making framework including statutory delegations and management authorities
  • formalising Treasury’s role as external monitor, and reporting to them on our performance, including consideration of a new Financial Policy Remit issued by the Minister of Finance
  • aligning more closely with wider state sector practice in terms of reporting and monitoring requirements
  • introducing a new Foreign Reserves Coordination Framework, which will bring greater transparency about our management and use of foreign reserves.

Read the full Reserve Bank of New Zealand Act on the Legislation.govt website