Reserve Bank of New Zealand (Monetary Policy) Amendment Bill

Thank you. I am looking forward to debating this bill in the committee of the whole House. This is a very important bill because the Reserve Bank is a fundamental tenet of the arrangements that we have in place to make sure that we’ve got fiscal sustainability in New Zealand. The Reserve Bank, acting as an independent unit, largely oversees monetary policy, although it has a range of other operational requirements to fulfil. But its prime role is to oversee monetary policy and exercise that right by the setting of the official cash rate (OCR). Of course, many people realise the importance of the OCR, which is setting the daily cash rate that banks have to pay for their overnight deposits with the Reserve Bank. That, in itself, is the underpinning for interest rates for all of New Zealand, and that in turn makes a significant contribution to the foreign exchange rate of New Zealand and how it’s valued overseas.

So this bill is interesting in that for some reason—one of the questions I’ll be looking forward to asking Minister Clark is to tell us why this change is required, and there are a number of changes. The first is around the issue of giving the Reserve Bank a dual mandate. Most people will be aware that—

I apologise to the member for interrupting him, but it has come time for me to report progress.

House resumed.

The Chairperson reported the Misuse of Drugs (Medicinal Cannabis) Amendment Bill with amendment, progress on the Reserve Bank of New Zealand (Monetary Policy) Amendment Bill, and no progress on the Coroners (Access to Body of Dead Person) Amendment Bill.

Report adopted.

The House adjourned at 12.56 p.m. (Thursday)