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Statement of Performance Expectations 2024/25

Te Tauākī o Ngā Tūmanakohanga Whakatutuki

Our Statement of Performance Expectations 2024/25 (SPE) reflects our ongoing work to evolve and develop as an organisation.

Statement of Performance Expectations 2024/25
Statement of Performance Expectations 2024/25

Our Statement of Performance Expectations 2024/25 (SPE) reflects our ongoing work to evolve and develop as an organisation.

How the SOI and the SPE work together

To understand our performance, this SPE needs to be read together with our Statement of Intent (SOI). Our SOI sets out RBNZ’s strategy, which explains our medium to long-term desired outcomes, strategic themes, and intentions.

At the end of each year, our annual report provides an assessment of our progress against those outcomes, using mainly qualitative performance measures: for example, by referring to case studies that highlight longer-term, larger-scale shifts required to achieve high-level outcomes. 

Our approach | Tō mātou ara mahi

Our performance measures enable us to assess our service performance each year against our targets. 

We regularly review the way we assess and report our performance, to ensure we focus on measuring the impacts we want to have and to clearly articulate to our stakeholders how well we are performing against our desired outcomes. 

We have designed new output classes for this SPE, and refreshed our performance measures.

In particular:

  • We have replaced the four output classes in our SPE 2023/24 with nine output classes.
  • Underneath the output classes, we have 22 performance measures. They are a combination of existing measures and new measures. 
  • Our approach to target setting and assessment methodology is consistent. 

Our nine output classes align with:

  • our three statutory objectives; and
  • our high-level strategic outcomes

How we align with our strategy | He pēhea mātou e whakahāngai ai ki rautaki

Output classes in this SPE have been aligned with our strategy by reference to the impacts they have on our high-level outcomes. This means we can measure and report on our performance against our strategic goals. Most of our functions and activities support the achievement of more than one outcome.

Economic objective 

Our economic objective is achieving and maintaining stability in the general level of prices over the medium term. 

We support the MPC to make the best possible decisions for New Zealand, to achieve inflation targets over the medium term, as set out in the MPC Remit. 

Performance measures: 

  • 1.1 The research we provide the MPC supports members in making informed decisions.
  • 1.2 The functional support that we provide to the MPC and the Board supports members of MPC and the Board to comply with their procedural responsibilities under the Act.

We communicate the MPC’s decisions, considerations and strategy by publishing and publicising Monetary Policy Statements. We supplement Monetary Policy Statements with a range of other communications and outreach, including interviews, speeches and other engagements with media, the public and other stakeholders.

Performance measures:

  • 2.1 Monetary policy decisions are effectively communicated.
  • 2.2 Monetary policy decisions are effectively implemented.

Financial stability objective 

The financial stability objective is to protect and promote the stability of New Zealand’s financial system. This includes ensuring that the financial system remains functional and supports the economy and society, even in a crisis.

We undertake a range of work to identify, assess and monitor financial stability risk and vulnerability, and support entities to understand and build capability necessary to manage these risks. 

Performance measures: 

  • 3.1 Key messages from Financial Stability Reports, Special Topic publications, thematic reviews and stress tests reach intended audiences.
  • 3.2 Financial Stability Reports, Special Topic publications, thematic reviews and stress tests are of high quality.
  • 3.3 Regulated entities adopt recommendations to improve risk management practices in response to our risk monitoring work.

Promoting resilience in the financial system, and in the financial entities that make up the system, is our key focus. We aim both to reduce the build-up of risk across the financial system, and improve the ability of individual entities and the system as a whole to respond to risks, and absorb shocks.

Performance measures:

  • 4.1 Prudential policy proposals are of high quality.
  • 4.2 Policy development is informed by stakeholder engagement.

Performance measures:

  • 5.1 We successfully engage with regulated entities.
  • 5.2 Potential entity risks are identified in a timely manner. 
  • 5.3 Risks identified in supervisory risk assessments are managed according to the moderated and approved supervision strateg.
  • 5.4 Enforcement actions are risk-based, proportionate, and transparent.
  • 5.5 Our resolution framework is comprehensive

Central Bank objective 

The central bank objective requires us to act as New Zealand’s central bank in a way that furthers the purposes of the Act. 

Engaging and collaborating effectively with the public and other stakeholders is vital to our performance.

Performance measures:

  • 6.1 We publish documents and undertake media interviews and speaking engagements to inform stakeholders.
  • 6.2 New Zealanders understand what we do and why we do it.
  • 6.3 Parliament, through the Finance and Expenditure Committee, is supported to conduct effective oversight of RBNZ.

Our payment and settlement systems and our domestic market facilities support market functioning, financial stability and the economy. A safe, efficient and resilient payment system that enables day-to-day financial transactions is critical to New Zealanders and to the smooth functioning of the economy. 

Performance measures:

  • 7.1 Financial transactions happen in real time.
  • 7.2 ESAS and NZClear demonstrate strong resilience against disruptions.
  • 7.3 Sufficient liquidity to support settlements within payment systems. Facilities are available to manage the level of settlement cash on a day-to-day and extraordinary basis.

Reliable and efficient money, cash and payment services are essential to protect and promote the stability of a financial system that works for all. We ensure that the supply and integrity of our currency and physical cash, along with the system that moves and stores it, meets the needs of the public. 

Performance measures:

  • 8.1 We monitor and maintain an efficient, resilient and sustainable cash system.

We hold and manage foreign reserves in order to be able to intervene in the New Zealand dollar (NZD) market for financial stability or monetary policy reasons. Foreign reserves are safe and liquid assets held in currencies such as United States dollars, Euros, and Australian dollars. 

Performance measures:

  • 9.1 Foreign reserves and foreign intervention capacity are maintained within mandated limits.