Reserve Bank of New Zealand

Office address: 2 The Terrace, Wellington Central, Wellington 6140
Website: www.rbnz.govt.nz
Year established: 1934
Company type: banking
Employees: 500+
Expertise: monetary policy, regulation, supervision, financial markets, payment and settlement systems, financial stability, education, consultation, mortgage interest rates, inflation calculator, research, statistics, fintech support, economics
Parent company: The New Zealand Government
Key people: Adrian Orr (Governor), Matt Haigh (director), Paul Conway (director and chief economist), Greta Gordon (strategic adviser), Steve Gordon (director), Naomi Mitchell (director), Nick Jeffs (director)
Financing status: N/A

The Reserve Bank of New Zealand (RBNZ) is the country’s central bank, headquartered in Wellington with over 500 staff. It maintains a sound monetary and financial system, ensuring confidence for people, communities, and businesses to spend, borrow, and save. The bank aims to foster national economic wellbeing, managing $8.92 billion in banknotes and coins as of June 2023.

History of Reserve Bank of New Zealand

The Reserve Bank of New Zealand was founded in 1934, starting with the issuance of its first banknotes. In 1990, the Banking (Prudential Supervision) Act introduced an inflation-targeting regime, making New Zealand a pioneer in this approach. Amendments in 2008 enhanced the bank's regulatory framework, including capital requirements for deposit takers.

The Non-Bank Deposit Takers Act 2013 further expanded RBNZ's regulatory authority. In 2018, the Labour-led government established the Monetary Policy Committee, integrating employment objectives with price stability. The 2021 Act refined governance, and in 2023, the focus shifted back to price stability with the elimination of employment objectives.

Products and Services of Reserve Bank of New Zealand

The bank offers a variety of services essential to maintaining the country's financial stability and economic wellbeing:

• mortgage interest rates: provides data on new residential mortgage standard interest rates, aiding borrowers in understanding current lending costs
• inflation calculator: a tool to calculate the impact of inflation on the purchasing power of money over time
• monetary policy: implements policies to achieve price stability and support maximum sustainable employment
• financial stability: ensures a stable financial system through regulation and monitoring of financial institutions
• regulation and supervision: oversees banks, insurers, and non-bank deposit takers to ensure compliance with prudential standards
• money and cash: manages currency in circulation and ensures the availability of physical cash
• financial markets: conducts operations to support monetary policy and maintain market stability
• payments and settlement systems: provides infrastructure for secure and efficient financial transactions

The Reserve Bank of New Zealand also offers educational resources and encourages public consultations to gather diverse viewpoints on financial matters, ensuring inclusive and informed policy-making.

Culture at Reserve Bank of New Zealand

The Reserve Bank of New Zealand is a globally respected financial institution with a diverse range of roles for all career stages. Employees engage in meaningful work within an inclusive and supportive environment. The bank values its people, providing them with necessary resources and flexibility to thrive:

• flexibility and work/life balance: five weeks annual leave, flexi leave, and equipment subsidies
• comprehensive wellness package: health checks, flu vaccinations, 15 days wellness leave annually, and wellness reimbursement
• generous parental leave: paid leave for new parents and additional wellness leave upon return
• KiwiSaver: employer contributions exceeding legislative requirements
• growing with the bank: learning and development opportunities including LinkedIn Learning
• socialisation: friendly and social work environment celebrating achievements
• other benefits: various amenities, relaxed dress code, and CBD locations with parking options

The Reserve Bank of New Zealand prioritises diversity and inclusion, recognising that a variety of perspectives enhances innovation and reflects societal needs. It embeds these principles into all aspects of its operations, actively pursuing diversity and inclusion goals with dedication and energy. The bank fosters an inclusive environment, promoting equity and encouraging participation from diverse groups:

• gender and pay equity, and women in leadership
• welcoming knowledge of Te Ao Māori, Tikanga, and Te Tiriti
• various employee-led networks and interest groups, including a Diversity and Inclusion Group and a Women in Leadership Network
• Kōkako women's leadership program to develop emerging women leaders and advance them to senior roles

The bank places a strong emphasis on sustainability, aiming to mitigate risks associated with climate change and the transition to a low-carbon economy. The climate change strategy focuses on monitoring and managing its impacts, integrating climate considerations into core functions, and providing leadership through global collaboration. These initiatives guide their efforts to address climate-related challenges:

• getting the house in order: monitoring and managing their impacts on climate change
• getting the settings in place: mainstreaming climate change considerations into core functions
• showing the way: providing leadership and collaborating with the global regulatory community

Its vision, ‘Great Team, Best Central Bank’, reflects a unified approach to achieving its goals. Guided by core values, the bank’s work supports the nation's economic health and fosters confidence in financial activities.

About Reserve Bank of New Zealand Governor Adrian Orr and Key People

Adrian Orr is the Governor of the Reserve Bank of New Zealand, first appointed in 2018 and reappointed for a second term in 2023. He was previously CEO of the Guardians of the New Zealand Superannuation Fund and chief economist at Westpac Banking Corporation. Orr holds a bachelor's degree from the University of Waikato and a master's in development economics from the University of Leicester.

Key people who help the Governor operate the institution include directors and advisers from various departments:

• Matt Haigh serves as director of data, statistics, and analytics, focusing on data governance and analysis
• Paul Conway is the director of economics and chief economist, leading economic research and policy advice
• Greta Gordon is a strategic adviser, providing policy advice and strategic planning
• Steve Gordon serves as the director of payment and settlements, overseeing transaction systems and payment infrastructure
• Naomi Mitchell is the director of communications and stakeholder engagement, managing public relations and communications strategies
• Nick Jeffs is the director of strategy and business performance, driving strategic initiatives and business performance improvements

The Future at Reserve Bank of New Zealand

The Reserve Bank of New Zealand continues to adapt its policies to address emerging economic challenges. Recent changes include activating debt-to-income restrictions and easing loan-to-value ratio limits to balance financial stability. These measures aim to reduce high-risk lending while ensuring resilience in the financial system.

Recently, the central bank decided to keep the official cash rate unchanged, despite calls for an earlier rate cut amid a struggling economy. This decision underscores RBNZ's commitment to maintaining restrictive monetary policy to combat persistent inflation. Moving forward, the bank aims to bring inflation within the target range while ensuring economic stability and resilience.