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Reserve Bank of New Zealand (Monetary Policy) Amendment Bill

Introduced on July 23 following the Government’s review of the Reserve Bank Act. The Bill has twomain objectives; amending the objectives of monetary policy to require consideration of maximum sustainable employment alongside price stability in monetary policy decision making; and setting up a monetary policy committee to make decisions on monetary policy. First reading completed on July 26 with National and ACT opposed to watering down the focus of monetary policy. Referred to the Finance and Expenditure Committee with a report back due by December 3. Reported back on Nov 15 with just minor changes. National and ACT put in minority reports on their concerns and worries about undermining the independence of the Bank. Second reading on Dec 4, committee stage Dec 11 and third reading on Dec 18 with no major changes and National and ACT still opposed on the same grounds.
Reserve Bank of New Zealand (Monetary Policy) Amendment Bill