About monetary policy

The Reserve Bank uses monetary policy to control inflation and keep it within a specific target band. Find out about how the Reserve Bank uses and implements monetary policy to maintain price stability.

Our At a Glance series explains what you need to know about monetary policy. It also goes into detail on the RBNZ economic model and how our economy works, how the RBNZ forecasts projections, explains what the Monetary Policy Statement is and also how the RBNZ makes monetary policy decisions.

Introduction to monetary policy
Thumbnail - Fact sheet - Explaining New Zealand's monetary policy
A brochure explaining how monetary policy works in New Zealand, and the Reserve Bank’s role in implementing it.
Thumbnail - Fact sheet - What is inflation?
Inflation and deflation in the New Zealand context.
Thumbnail - Fact sheet - What is the Official Cash Rate?
The Official Cash Rate (OCR) is an interest rate set by the Reserve Bank. It influences all other interest rates and is, in effect, the wholesale price of borrowing or lending money in New Zealand.
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Explaining the contract negotiated between the Reserve Bank and the Minister of Finance that defines price stability.
Implementing monetary policy

Finance and Expenditure Select Committee Inquiry into the Future Monetary Policy Framework

The Reserve Bank released its submission to the Finance and Expenditure Committee's Inquiry into the Future Monetary Policy Framework.
27 July 2007

Reserve Bank Board of Directors' Submission on Future Monetary Policy Framework

The Reserve Bank Board of Directors have made a separate submission (PDF 46KB) to the Finance and Expenditure Committee's Inquiry into the Future Monetary Policy Framework.
30 July 2007

Reserve Bank submission to the Commerce Committee on the inquiry into housing affordability in New Zealand

This submission is in three sections. The first section begins by looking at trends in housing affordability. The second section of the submission looks at the drivers of house prices. The third section of the submission looks at whether there are any areas that might warrant policy attention from government. The submission includes background material and some policy suggestions which, it is hoped, will be of help to the committee.
June 2007

Supplementary Stabilisation Instruments (SSI)