The MPC Remit sets the operational objectives for monetary policy. The amended Remit retains an inflation target of 1% to 3% over the medium-term, with a focus on the 2% mid-point, and removes the objective to support maximum sustainable employment.
This amendment was announced today by the Minister of Finance Nicola Willis following consultation with the Reserve Bank.
“The amendment is consistent with advice the Reserve Bank has given in the past and helps to reiterate our focus on achieving low and stable consumer price inflation,” Board Chair Professor Neil Quigley says.
The amendment is also consistent with the views expressed by the Reserve Bank in our recent Monetary Policy Committee Remit Review.
Alongside the new Remit, the MPC has also agreed to changes to the MPC’s Charter with the Minister of Finance. The Charter sets out decision-making processes and transparency requirements for the MPC.
More information
Government renews RBNZ focus on inflation | beehive.govt.nz
Letter to Minister of Finance Hon Nicola Willis on proposed changes to the Monetary Policy Committee’s Remit (PDF, 296 KB)
Letter to Minister of Finance Hon Nicola Willis on proposed changes to the Monetary Policy Committee’s Charter (PDF, 172 KB)
Read information about the most recent Monetary Policy Remit Review which happened in 2022 and 2023 and was published on 27 June 2023.
