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.
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
A brochure explaining how monetary policy works in New Zealand, and the Reserve Bank’s role in implementing it.
Inflation and deflation in the New Zealand context.
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.
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
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.
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)