What Is the Reserve Bank of New Zealand?

The Reserve Bank of New Zealand has the only statutory right to issue notes in New Zealand (issuance of New Zealand dollars) and is the central bank of the New Zealand government. It is responsible for the implementation of New Zealand's monetary and monetary policies and maintaining the stability and effectiveness of the financial system.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand has the only legal note issuing authority (issue

The Reserve Bank has a board of directors appointed by the government. The council is not responsible for formal decision-making, but monitors the performance of the president and the entire bank. The council can also propose the appointment and removal of the reserve bank president. ^[1]

The main departments of the Reserve Bank of New Zealand are the Economics Department, the Financial Stability Department and the Monetary Department. The Economics Department is responsible for economic research and advice on monetary policy; the Financial Stability Department is responsible for monitoring financial markets, conducting open market operations, and managing foreign exchange reserves; the Currency Department is responsible for designing and issuing New Zealand banknotes and coins. The Reserve Bank of New Zealand also has financial services, information services, internal audit and human resources departments.

New Zealand becomes first advanced economy to raise interest rates in March

The Reserve Bank of New Zealand raised its cash interest rate by 25 basis points from 2.50% to 2.75% on March 13. As expected, this made New Zealand the first advanced economy to raise interest rates, and also showed that Western economies are slowly moving away from the global financial crisis. In the recovery. The Reserve Bank of New Zealand warned that as economic momentum increases, there will be a series of further rate hikes to control inflationary pressures.

The Reserve Bank of New Zealand's benchmark interest rate has remained at a record low 2.5% since March 2011, when the central bank announced an emergency rate cut of 50 basis points after the Christchurch earthquake. At the same time, the country's daily exports of dairy products account for one-third of the world's total exports, so rising dairy prices have greatly benefited the country's economy. In addition, the country's business confidence is very strong and the number of immigrants has also increased significantly. In the fourth quarter of 2013, the country's unemployment rate fell to a four-and-a-half year low. ^[3]

RBNZ raises interest rates again by 25 basis points to 3% in April

The Reserve Bank of New Zealand (RBNZ) announced its interest rate resolution on April 24, raising interest rates again by 25 basis points to 3.00%, due to increased economic expansion momentum and rising inflationary pressures. The Reserve Bank of New Zealand is the only developed country central bank to begin tightening policy in the current cycle.

The Fed's mission is to keep annual inflation between 1% and 3%, with 2% being the midpoint of the target. New Zealand's three-month consumer price index (CPI) rose by 1.5% annually through March. New Zealand's agriculturally developed economy has always benefited from the soaring demand for dairy products from Asia's growing middle class, and the country's post-earthquake reconstruction has also stimulated the economy. ^[4]