NZ central bank’s new governance board begins work July 1

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FILE PHOTO: FILE PHOTO: Pedestrians walk near the main entrance to the Reserve Bank of New Zealand located in central Wellington, New Zealand

WELLINGTON (Reuters) – New Zealand central bank’s new governance board, created by the government to strengthen decision making and accountability, will start work on Friday.

The establishment of the Reserve Bank of New Zealand’s (RBNZ) new statutory board responsible for non-monetary policy decisions, replacing the earlier single decision-maker model, was announced last year.(nL1N2PI04Y)

“This is a significant change that will strengthen the institutional arrangements of the Reserve Bank,” New Zealand’s Finance Minister Grant Robertson said in a statement.

He said the shift to a more conventional board model brings the Reserve Bank in line with other central banks, Crown Entities and public companies in New Zealand. 

The changes are part of a two-phase review of laws that govern the RBNZ, kicked off by the centre-left Labour-led government in 2017, which also elevated financial stability, employment and housing affordability as priorities for the bank.

(Reporting by Lucy Craymer; Editing by Shri Navaratnam)