RBNZ Gov' Orr: Reserve bank embraces the future

RBNZ Gov' Orr has delivered a speech that says that the reserve bank embraces the future (but doesn’t refer to monetary policy/NZ economy). At a speech delivered in Auckland this morning to the Financial Services Institute of Australasia (FINSIA), Reserve Bank Governor Adrian Orr outlined the bank’s vision to be ‘a great team and the best central bank’. He also encouraged others to get involved in shaping this future.

“This is the appropriate time to outline the future of the Reserve Bank, and how the legislative changes under consideration will promote the prosperity and wellbeing of New Zealanders, and contribute to a sustainable and productive economy”.

Reflecting on the Government’s recent announcements about the review of the Reserve Bank Act, Mr Orr said, “I’m privileged to be the Governor and during my tenure the Bank has actively embraced change. We will continue to evolve so as to remain effective and ensure we are future-fit.”

The Government recently decided that the Reserve Bank’s new mandate will ensure the Board has more formalised duties, owning both the strategy and risk appetite of the Reserve Bank.

Mr Orr said, “I welcome these developments. They will support our purpose and team, and best ensure the transparency, accountability, and diversity of thought that is needed to form our decisions. Stakeholders can expect the Bank to be clear about what the organisation is designed to achieve and how it is performing across all of our functions.”

Given that there has been no mention of monetary policy, not the NZ economy, this has no impact on the currency market.