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Monetary policy

About monetary policy

We use monetary policy to maintain price stability and support maximum sustainable employment. Our objectives are defined in the remit to the Monetary Policy Committee (MPC).

Published date:

Current remit

The current remit requires us to keep inflation between 1% and 3% on average over the medium term, with a focus on keeping future average inflation near the 2% target midpoint. There is no numerical target for employment, as we use a range of different indicators to assess the maximum sustainable level.

Monetary Policy Framework

How we achieve low and stable inflation and support maximum sustainable employment.

Monetary Policy Framework
Monetary Policy Framework

Monetary policy decisions

This page provides a timeline of our monetary policy decisions, with links to the related media releases.

Monetary policy decisions
Monetary policy decisions

More in this section

Monetary Policy Handbook

The Monetary Policy Handbook explains the Monetary Policy Framework. It sets out key assumptions about how the economy operates and the contribution of monetary policy to New Zealand’s economy.

Inflation and maximum sustainable employment

This page explains our dual mandate objectives for monetary policy—inflation and maximum sustainable employment.

History of the remit and policy targets agreement

A history of the development of our monetary policy remit, which before 2019 was called a policy targets agreement.

Related content

Monetary Policy Committee

Our Monetary Policy Committee is responsible for making monetary policy in New Zealand to keep prices stable and support maximum sustainable employment.

Inflation calculator

Find out what goods and services were worth in today's money when adjusted for inflation, and vice versa.

Official cash rate

The official cash rate (OCR) is the interest rate set by the Monetary Policy Committee (MPC). It is the MPC's main policy tool.

Monetary Policy Statement

The Monetary Policy Committee's approach to achieving its objectives.