Statement of Intent 1 July 2018 - 30 June 2021

Release date
June 2018
Main file

Foreword

In this Statement of Intent (SOI) we outline our efforts to evolve into A Great Team – Best Central Bank. These efforts involve significant change in culture, capabilities, and communication. We are up for the challenge.

Starting at home, we will be strengthening the Bank’s performance culture, to ensure we are constructive, effective, and an employer of choice.

We also intend to place New Zealanders’ understanding of us on a wider footing. We will make our messages more accessible and relevant. Our tool sets will also rely more on digital and social media to reach our audience. And we will promote a deeper understanding at the Bank of tikanga Māori and Te Reo Māori.

New Zealand’s banknotes and coins retain a high level of confidence and use, with demand increasing despite the growth in electronic transactions. We have studied the public’s use of cash, and will finalise a future operating model for its distribution and storage.

The Bank has a significant balance sheet of financial assets and liabilities. This is necessary to provide liquidity and stability to our financial system. It is essential that our management and tool sets are up to the demands of the activity. We intend to continue to invest in appropriate trading systems and complete a full review of our investment activities.

We will also look to improve business efficiency and soundness, especially knowledge management, through a multi-year investment strategy. Included in this effort is our plan to introduce a revamped payments system infrastructure, and make more use of digital services.

In terms of policy, the Reserve Bank has a wide range of responsibilities. This year, Parliament is finalising law changes that aim to give the Bank responsibility for contributing to maximising sustainable employment. This task is already incorporated in our Policy Targets Agreement with the Minister of Finance.

The law change will also move official interest rate setting decisions to a ‘Monetary Policy Committee’ (MPC), made up of Bank staff and external members. We are committed to implementing these changes, and aim to ensure that the MPC is effective and transparent – creating a greater understanding of the reasoning for, and impact of, our decisions.

There will also be an ongoing Government Review of the Reserve Bank of NZ Act, looking at how we prudentially regulate and supervise the financial system. Our staff will work jointly with NZ Treasury officials – amongst others – in a constructive manner, to ensure this work is completed over coming years.

To achieve our vision of A Great Team, Best Central Bank there is, and always will be, much to be done. Our people are committed to this vision, and will need to work together to succeed.

Adrian Orr
Governor

Geoff Bascand
Deputy Governor

13 June 2018