Strategic progress and financial stability in focus
The Reserve Bank (RBNZ) has released its annual report for the year ending June 30, outlining significant achievements and setting the stage for multi-year initiatives.
Strengthening strategic framework
RBNZ board chair Prof. Neil Quigley (pictured above) highlighted the progress made in refining RBNZ’s strategy and performance framework.
“The board’s major focus this year has been to evolve our strategy and performance framework,” Quigley said.
A key milestone was the publication of the updated Statement of Intent for 2024-2028, which aligns with the bank’s Performance Expectations and ensures accountability for meeting its mandate.
RBNZ’s key projects ensuring financial system stability
This year saw several major projects come to fruition, including the implementation of the Deposit Takers Act, the Foreign Reserves Management Framework, and the delivery of a new payments messaging format (ISO 20022).
These efforts aim to strengthen confidence in New Zealand’s financial system.
Monetary policy impact
RBNZ Governor Adrian Orr acknowledged the challenging global economic landscape but pointed to the positive impact of RBNZ’s monetary policies in reducing inflation from 6% in 2023 to 3.3% in June.
“I am proud of the gains we have made,” Orr said, emphasising the bank’s commitment to maintaining a resilient and competitive financial system.
Looking to the future: Digital currency and financial inclusion
RBNZ continues to explore future-focused initiatives, including digital currencies and financial inclusion.
Orr said, “We are also exploring the future of money and role of digital currencies,” alongside other projects like the Te Ao Māori strategy and the forthcoming climate-related financial disclosure set for release in October.
Dividend payment to the Crown
In line with its financial principles, RBNZ, which is expected to cut the OCR by 50bp at the upcoming monetary policy review, will pay a dividend of $597 million to the Crown for the 2023/24 financial year, following approval by the minister of finance.
The annual report underscores RBNZ’s efforts to maintain a trusted and robust financial environment while preparing for the evolving economic landscape.
For more information, read the Annual Report 2024 and the RBNZ media release.
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