About monetary policy

The Reserve Bank uses monetary policy to control inflation and keep it within a specific target band. Find out about how the Reserve Bank uses and implements monetary policy to maintain price stability.

Review of the Reserve Bank Act

In November 2017 the Government announced a review of the Reserve Bank of New Zealand Act 1989. Information about the review is published by The Treasury.

More information is available on The Treasury website

Our At a Glance series explains what you need to know about monetary policy. It also goes into detail on the RBNZ economic model and how our economy works, how the RBNZ forecasts projections, explains what the Monetary Policy Statement is and also how the RBNZ makes monetary policy decisions.

Introduction to monetary policy
Thumbnail - Fact sheet - Explaining New Zealand's monetary policy
A brochure explaining how monetary policy works in New Zealand, and the Reserve Bank’s role in implementing it.
Thumbnail - Fact sheet - What is inflation?
Inflation and deflation in the New Zealand context.
Thumbnail - Fact sheet - What is the Official Cash Rate?
The Official Cash Rate (OCR) is an interest rate set by the Reserve Bank. It influences all other interest rates and is, in effect, the wholesale price of borrowing or lending money in New Zealand.
Generic Page Thumbnail
Explaining the contract negotiated between the Reserve Bank and the Minister of Finance that defines price stability.
Implementing monetary policy
Submissions made by the Bank
Generic Page Thumbnail
In April 2007, at the request of the Government, Parliament's Finance and Expenditure Committee agreed to undertake an inquiry into the future monetary policy framework. The Bank and the Bank's Board of Directors made separate submissions in July 2007.
Generic Page Thumbnail
In August 2011 the Bank sent a submission to the Commerce Committee on the inquiry into housing affordability in New Zealand. The submission looks at trends in housing affordability, at the drivers of house prices and whether there are any areas that might warrant policy attention from government. it also includes background material and some policy suggestions.
Supplementary Stabilisation Instruments (SSI)