Reserve Bank’s New MPC Charter Boosts Transparency and Accountability

A new charter for the Reserve Bank’s Monetary Policy Committee will strengthen the committee’s transparency and accountability by making the views of individual members clearer, Finance Minister Nicola Willis says.

The charter, which comes into effect today, has been agreed by the Minister and the MPC, which sets the Official Cash Rate.

From today, when the committee does not reach consensus, members’ votes will be publicly available, Nicola Willis says.

The new charter also makes it easier for MPC members to communicate publicly about monetary policy by easing current restrictions and encouraging members to speak externally, while retaining rules that ensure equal access to information.

The MPC will also begin attributing material differences in views in its records of meetings.

Alongside the independent review of New Zealand’s monetary policy response to the Covid-19 pandemic, these changes will strengthen transparency, support accountability, and help build public understanding of the MPC’s decision making, Nicola Willis says.

The committee will review these changes, along with its wider decision-making processes, in 12 months and report back to me on their effectiveness and whether they support clear communication and transparency.  Note for editors The new charter is available on the Reserve Bank’s website: Monetary Policy Framework - Reserve Bank of New Zealand - Te Pūtea MatuaAdvice received on the MPC Charter and other changes to enhance transparency settings is available on Treasury and the RBNZ’s websites: https://www.treasury.govt.nz/publications/information-release/advice-relating-changes-strengthen-monetary-policy-committee-transparency-settings Information releases - Reserve Bank of New Zealand - Te Pūtea Matua