RBNZ issues Statement of Intent

RBNZ issues Statement of Intent

The Reserve Bank today made public a Statement of Intent which outlines the Bank's plans for the period 2004 to 2007.

This Statement of Intent has been prepared as a pilot document for an accountability obligation that will be required of the Reserve Bank from 2005 onwards. Under impending legislation, section 162A of the Reserve Bank of New Zealand Act 1989 will require the Reserve Bank, prior to each financial year, to provide the Minister of Finance with a Statement of Intent traversing the following three years.

The Act is expected to stipulate that the Reserve Bank's Statement of Intent must contain:

" key background information about the Reserve Bank and its operating environment;

" the nature and scope of the Bank's functions and its principal areas of operations;

" the nature of the Bank's specific objectives;

" the proposed strategies for achieving objectives and carrying out operations;

" the proposed strategies for managing the organisational health and capability of the Bank; and

" a statement of the projected income and expenditure for the first financial year in the three financial year period to which the Statement of Intent relates.

The document released today has been prepared both to inform the public and to establish the format of these documents in the future. It is available on the Reserve Bank's website at http://www.rbnz.govt.nz.

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