The Reserve Bank’s commitment to price and financial stability in an uncertain global environment is underlined in the Bank’s Statement of Intent (SOI) for 2017-2020.
The Reserve Bank supports economic growth by targeting price stability, promoting a sound and efficient financial system, and meeting the public’s currency needs.
The SOI, signed off on 16 June, outlines the nature of the Bank’s work programme over the next three years. The Bank’s nine strategic priorities are framed around three themes: enhancing the Bank’s policy frameworks; continuing to strengthen the Bank’s internal and external engagement; and improving infrastructure and reducing enterprise risk.
“The outlook for New Zealand’s economic growth remains positive, albeit with considerable uncertainty remaining, especially internationally,” Governor Graeme Wheeler said.
“We are working to deepen the Bank’s understanding of the evolving conditions affecting the New Zealand economy and their implications for monetary policy.”
The New Zealand financial system remains sound and continues to perform its functions effectively. The International Monetary Fund’s Financial Sector Assessment Programme (FSAP) review has provided useful input for the ongoing development of the Reserve Bank’s prudential regime.
“We will review key elements of the prudential policy framework to better meet the Bank’s soundness and efficiency objective,” Mr Wheeler said.
The Bank will also review the macro-prudential policy framework in line with the five-year requirement set out in the Memorandum of Understanding between the Bank and the Minister of Finance.
“Throughout, the Bank will maintain a high level of engagement with its stakeholders and communicate widely on its policies, their rationale and impacts. The Bank will monitor the effectiveness of engagement through an External Stakeholder Engagement survey in 2018.”
As well as working to complete the implementation of replacements for the Exchange Settlement Account System (ESAS) and the securities settlement and depository system (NZ Clear) – both enhancements to the payments system – the Bank will also be implementing the roadmap for best-practice management of its balance sheet and finances.
The SOI outlines other key projects, including improving the resilience of the Bank’s operations and developing a plan for the future custody and distribution of currency.
“We continually seek to strengthen our performance and we believe these strategic priorities position the Bank well to face the challenges ahead,” Mr Wheeler said.
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