Reserve Bank of New Zealand Governor Hawkesby reiterates operational independence alongside partnership with government and stakeholders

Reserve Bank of New Zealand Governor Christian Hawkesby used remarks to an RBNZ event with industry stakeholders to reaffirm the importance of central bank operational independence, while stressing that independence should sit within an effective partnership framework aimed at supporting New Zealanders’ economic wellbeing. He argued that operational independence does not imply autonomy or isolation, and set out the government’s role in monetary policy and financial stability, including maintaining the legislation underpinning the Reserve Bank’s mandates, outlining policy objectives, and making resolution decisions in the event of a deposit taker or wider financial system failure. He also linked the Bank’s operational independence in setting monetary and prudential policy to the need for transparency and accountability, and called for a clear division of roles and responsibilities between government and the central bank. The partnership concept was extended beyond government to collaboration with Council of Financial Regulators counterparts, the financial industry, fintechs, academics, the business sector, communities, iwi, and other government agencies on the future of money, cash, banking, payments and insurance.