RBNZ

The Reserve Bank of New Zealand (RBNZ) is the central bank of New Zealand. It is responsible for conducting monetary policy to achieve price stability, to support maximum sustainable employment, and to promote a sound and efficient financial system. The bank also issues New Zealand currency, oversees the payments system, and monitors and contributes to the stability of the financial sector.

The RBNZ was established in 1934 under the Reserve Bank Act 1933 and gained independence with the Reserve Bank of New Zealand Act 1989. Its statutory mandate centers on price stability, typically targeting an annual inflation rate within a 1-3 percent band over the medium term, along with supporting maximum sustainable employment and contributing to financial system resilience.

Monetary policy is the bank’s primary tool, employing the Official Cash Rate (OCR) as its main instrument to influence interest rates, borrowing costs, and economic activity. Through market operations and communications, the RBNZ guides expectations and steers inflation toward the target. In addition to its monetary remit, the bank plays a key role in financial stability by supervising banks and certain financial institutions, and by regulating and overseeing the payments system.

Governance is led by the Governor, who serves as the bank’s chief executive, and is supported by the Deputy Governor. The RBNZ operates from Wellington and interacts with the government and international institutions on economic and financial policy matters.