Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Reserve Bank issues Statement of Intent

30 June 2008 Time

Reserve Bank issues Statement of Intent

The Reserve Bank has released its Statement of Intent (SOI) for 2008-2011. Reserve Bank Governor Alan Bollard said the SOI has been written in a period of considerable uncertainty in the outlook for the economy.

"Over the last six months or so, economic activity has slowed down markedly, while inflationary pressures, especially in fuel and food prices, have continued to strengthen," Dr Bollard said.

Since August 2007, the financial system has withstood a severe test of global financial markets, triggered initially by losses in the US sub-prime mortgage market. The IMF has described unfolding events as the largest financial shock since the Great Depression.

"The adjustment process might prove to be protracted. Further volatility in world equity markets, exchange rates, and debt markets is likely," Dr Bollard said. "In this environment, a key strategic priority for the Bank is to strengthen its prudential liquidity policy for banks."

Dr Bollard said the Bank is also implementing the new regulatory arrangements for non-bank deposit-takers and the insurance sector. A variation to the Bank's current five-year funding agreement has been approved by Government to ensure suitably qualified staff can be recruited to implement and administer the new arrangements.

At the same time, the Bank will ensure its management and systems continue to provide good support for its monetary and financial stability policy roles. A new econometric model is being introduced into the monetary policy and forecasting process and an integrated computer application is being built for collecting financial sector statistics.

The Bank's SOI includes new 'Key Performance Indicators' for the Bank, identifying the main non-financial measures and standards by which the performance of the Bank can be judged. "These indicators will evolve as we gain experience in how to use them," he said.

"Overall, this SOI reflects a strategic approach to ensuring the Bank's ability to maintain stability in an uncertain environment," Dr Bollard said.

You can view the SOI at the following link: http://www.rbnz.govt.nz/about/whatwedo/soi2008.pdf

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Slightly Softer Growth Expected In PREFU

A slightly softer growth forecast is the main feature of largely unchanged Pre-election Fiscal Update compared to the Budget forecasts three months ago, Finance Minister Steven Joyce says. More>>

ALSO:

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO: