Latest news with #TePūteaMatua
Scoop
7 days ago
- Business
- Scoop
Monetary Policy Affects Some Parts Of The Economy Differently: RBNZ Analytical Note
Some parts of the economy and prices for some products are more sensitive to a rise in the Official Cash Rate (OCR) than others. Reserve Bank of New Zealand – Te Pūtea Matua research found that sectors that make or trade goods, as well as housing and real estate related sectors are among the most sensitive to changes in the Official Cash Rate. 'When the OCR increases, these sectors tend to cool more quickly. On the other hand, sectors like primary production including dairy and meat, are less sensitive,' the Analytical Note authors say. The research also looked at how monetary policy affects prices across a wide range of domestic goods and services, which do not face as much foreign competition as internationally traded goods. 'We found that prices for accommodation are quite sensitive. So, when the OCR increases, it puts downward pressure on the cost of going on holiday or business,' the authors say. An OCR increase also has a strong impact on the cost of building a home. This means when the OCR increases, there is relatively more downward pressure on these costs than for prices of other domestic goods and services in the economy. Some services, like household power prices and insurance, are slower to respond to increases in the OCR. We carried out this research because identifying which parts of the economy are relatively more sensitive to monetary policy allows us to better understand how various parts of the economy may react when interest rates change. It also means we can see more clearly if past policy decisions are working through to the economy as expected. Key findings: We investigate the sensitivity of output and prices to monetary policy at a disaggregated level, focusing on GDP sectors and CPI non-tradables subgroups in New Zealand. Identifying which parts of the economy are relatively more responsive to monetary policy allows us to better understand how various parts of the economy may evolve in response to policy decisions and to better assess whether past policy decisions are transmitting to the economy as expected. For GDP, we find that goods-producing and goods-trading sectors are the most sensitive to monetary policy, while primary production and public services are the least sensitive. For CPI non-tradables inflation, we find subgroups such as housing construction costs and accommodation services are more sensitive to monetary policy, while subgroups such as energy and insurance are less sensitive. The small sample size leads to greater variation in estimated effects across model variations. As such, this analysis aims to serve as a starting point for further work in this area.
Scoop
12-06-2025
- Business
- Scoop
Statement from RBNZ chair Neil Quigley about OIAs on Adrian Orr's resignation
'RBNZ was late in producing a response to some of the OIAs we received on Adrian Orr's resignation. I regret that this delay occurred,' Reserve Bank of New Zealand – Te Pūtea Matua Chair Neil Quigley says. 'The circumstances and the volume of information associated with the OIAs on Adrian Orr's resignation were complex, and we needed to be sure that our consideration of relevant information was comprehensive. "As well as our obligations under the Official Information Act, we needed to take into careful consideration the former Governor's exit agreement and privacy law. For this reason, we extended consultation on the information and our response, including review by senior external counsel,' he said. 'On 5 March I was limited in what I could say about the former Governor's resignation both by the terms of his exit agreement and the fact that we were still working through finalisation of the detail of the next Five-Year Funding Agreement (FYFA). 'We were conscious of the need to explain to staff of the RBNZ the potential implications for staffing levels of a lower level of funding and needed time to consider the details of that. 'We are taking into account the feedback that we have received on our management of these OIA requests and looking carefully at how we can improve our response times in the future," Mr Quigley said.
RNZ News
05-06-2025
- Business
- RNZ News
Wide Reserve Bank restructure to follow executive and funding changes
The Reserve Bank has already been restructuring its executive team, with a number of its higher ups departing, and the latest news of a wider restructure comes after a major funding cut. Photo: RNZ / Samuel Rillstone A broad restructuring is on the cards at the Reserve Bank, less than two months after the government announced it would cut its budget . RBNZ said it would consult with staff about potential "broader organisational changes" later this month, but refused to provide additional details. RNZ understands certain backroom functions were being reviewed, as the central bank faced a 25 percent cut to its budget in the new financial year. It comes amid a restructure of its executive leadership team, with the departure of another assistant governor. It said Sarah Owen had left the RBNZ, following the earlier departures of Kate Kolich, Greg Smith, Nigel Prince and Simone Robbers. In May, the RBNZ said it would halve its executive leadership (excluding the governor) to four. After slimming down the executive, it said the leadership team below the executive also faced changes. The new leadership structure would come into place from 16 June, and would be made up of 20 director roles under four groups - financial stability, money, enterprise services and operations. "This is a critical time for Te Pūtea Matua (RBNZ), and the changes we're making are more than just structural," governor Christian Hawkesby said. "We want to ensure that we're match-fit for the changing environment and context we're operating in," he said. However, the RBNZ was tight-lipped about the broader organisational restructure. "We will soon be going into consultation with our staff as part of this next phase," a spokesperson said. "Out of care for our people, we have no further details to share externally at this time." The RBNZ has faced a period of uncertainty in recent months, with the reduction in government funding arriving after the abrupt departure of former governor Adrian Orr. It has previously faced criticism over a sharp increase in staff numbers, with the number of full-time equivalent employees increasing from 255 in 2018 to 641 in September 2024. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
29-05-2025
- Business
- Scoop
10 Cent Coin With King Charles III Image Now In Production
Press Release – The Reserve Bank of New Zealand Updating our currency with the new sovereign takes several years because we always hold sufficient stock to deal with demand spikes or supply issues. We make enough coins and banknotes just in case – not just in time, says Ian Woolford, Director … The Reserve Bank of New Zealand – Te Pūtea Matua has quality checked and approved the 10 cent coin with the effigy of King Charles III, King of New Zealand (KCIII), for production and New Zealanders can expect to see it in their change around 2027. Photos of the quality checking were released today giving people the first look at the actual coin. 'We received pre-production samples of the coin to check and approve before starting the full production run. We check the coins for quality, weight, size, security properties and that they match the design we ordered,' says Ian Woolford, Director of Money and Cash – Tari Moni Whai Take. 2024 is stamped on the coin which is the year RBNZ placed the order with the Royal Canadian Mint. New Zealand does not have a mint, so our coins are produced overseas. The King's effigy was designed for the Royal Mint by illustrator and designer Dan Thorne to be used on all New Zealand's coins. The Royal Numismatic Society of New Zealand provided advice on the 10 cent coin before it went into production. The King faces to the left in keeping with the convention that the direction changes between sovereigns. 'The reverse (or tails) side of the 10 cent coin still features an image of a koruru – the carved face on the gable of a meeting house – designed by James Berry as a part of the 1967 decimal coin series,' says Mr Woolford. 'All existing circulating coins, and $20 banknotes, bearing images of Queen Elizabeth II continue to be legal tender. We order notes and coins infrequently and do not plan to destroy stock or withdraw them early from circulation as this would be wasteful and poor environmental practice.' Minting the 20 cent, 50 cent, $1 and $2 coins with the KCIII image is likely to be around 2027. Coins then typically enter circulation around two years after production. 'Updating our currency with the new sovereign takes several years because we always hold sufficient stock to deal with demand spikes or supply issues. We make enough coins and banknotes just in case – not just in time,' says Mr Woolford. 'We will let everyone know when the KCIII coins are due to enter circulation as the time nears.' Banks, retailers, consumers and anyone using or handling cash will not need to do anything differently when we introduce the coins bearing the image of the King. We will work with the cash industry to make sure there are no glitches with cash handling machines like self-service checkouts, vending and change machines accepting and issuing the new and old coins.
Scoop
29-05-2025
- Business
- Scoop
10 Cent Coin With King Charles III Image Now In Production
The Reserve Bank of New Zealand – Te Pūtea Matua has quality checked and approved the 10 cent coin with the effigy of King Charles III, King of New Zealand (KCIII), for production and New Zealanders can expect to see it in their change around 2027. Photos of the quality checking were released today giving people the first look at the actual coin. 'We received pre-production samples of the coin to check and approve before starting the full production run. We check the coins for quality, weight, size, security properties and that they match the design we ordered,' says Ian Woolford, Director of Money and Cash – Tari Moni Whai Take. 2024 is stamped on the coin which is the year RBNZ placed the order with the Royal Canadian Mint. New Zealand does not have a mint, so our coins are produced overseas. The King's effigy was designed for the Royal Mint by illustrator and designer Dan Thorne to be used on all New Zealand's coins. The Royal Numismatic Society of New Zealand provided advice on the 10 cent coin before it went into production. The King faces to the left in keeping with the convention that the direction changes between sovereigns. 'The reverse (or tails) side of the 10 cent coin still features an image of a koruru - the carved face on the gable of a meeting house - designed by James Berry as a part of the 1967 decimal coin series,' says Mr Woolford. 'All existing circulating coins, and $20 banknotes, bearing images of Queen Elizabeth II continue to be legal tender. We order notes and coins infrequently and do not plan to destroy stock or withdraw them early from circulation as this would be wasteful and poor environmental practice.' Minting the 20 cent, 50 cent, $1 and $2 coins with the KCIII image is likely to be around 2027. Coins then typically enter circulation around two years after production. 'Updating our currency with the new sovereign takes several years because we always hold sufficient stock to deal with demand spikes or supply issues. We make enough coins and banknotes just in case - not just in time,' says Mr Woolford. 'We will let everyone know when the KCIII coins are due to enter circulation as the time nears.' Banks, retailers, consumers and anyone using or handling cash will not need to do anything differently when we introduce the coins bearing the image of the King. We will work with the cash industry to make sure there are no glitches with cash handling machines like self-service checkouts, vending and change machines accepting and issuing the new and old coins.
