John Pask

Published: July 13, 2022

Submitting To: Reserve Bank of New Zealand

Issue for Business: The Reserve Bank is legislated to achieve price stability and support maximum sustainable employment as the goals of monetary policy. The Reserve Banks specific operating guidelines from the Government for achieving this purpose are contained in the monetary policy Remit. The Consultation document looks at the merits of including other factors within the remit such as House Price Stability, Distributional Outcomes and Climate Change.

Action: BusinessNZ has made a submission expressing concern about the potential for the Reserve Bank to lose focus on its principal objective of Price Stability if a lot of new areas are covered within the Remit. It is also important that the Reserve Bank maintains credibility with the general public in respect to maintaining price stability.

Outcome: The Reserve Bank will be reviewing submissions on the Consultation Document over the next couple of months before outlining a draft proposal for further consultation later this year.