Protecting Independence While Embracing Partnership

29 October 2025

Reserve Bank Governor Christian Hawkesby has reaffirmed the crucial importance of central bank operational independence, while highlighting the need for partnership to enable the economic wellbeing of New Zealanders.

In remarks delivered to an RBNZ event with industry stakeholders, Mr Hawkesby said that central bank operational independence does not mean complete autonomy or isolation. Rather, he emphasised the importance of the central bank and the government working in partnership.

He explained the government’s critical role in monetary policy and financial stability. This includes owning the pieces of legislation underpinning the Reserve Bank’s mandates, outlining policy objectives, and making resolution decisions in case of a deposit taker or financial system failure.

Mr Hawkesby also noted that the central bank’s huge responsibility of having operational independence for setting monetary policy and prudential policy needs to go hand in hand with transparency and accountability.

“While respecting each other’s roles, a clear division of roles and responsibilities between government and central bank can enable an effective partnership, ultimately supporting the prosperity and wellbeing of New Zealanders,” he said.

Mr Hawkesby also acknowledged that working in partnership needs to extend beyond the central bank and the government.

“We need to work together with our Council of Financial Regulators [1] colleagues, the financial industry, fintechs, academics, the business sector, communities, iwi and a range of other government agencies on the future of money, the future of cash, the future of banking, the future of payments and the future of insurance.”

“The benefits to all New Zealanders will not be achieved without collective commitment and collective action,” he concluded.

Note:

1] The Council of Financial Regulators (CoFR) includes the Reserve Bank, Financial Markets Authority, Treasury, Commerce Commission, and Ministry of Business, Innovation and Employment.

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