Deputy Governor Geoff Bascand has been appointed Head of Financial Stability and Deputy Chief Executive of the Reserve Bank, Governor Graeme Wheeler and Acting Governor-designate Grant Spencer announced today. Mr Bascand will take up the role on 27 September, replacing Mr Spencer, who will be Acting Governor for six months from that date, after Mr Wheeler’s term as Governor ends. Mr Bascand is currently a Deputy Governor and the Bank’s Head of Operations. Prior to joining the Bank in 2013, he was Government Statistician and Chief Executive, Statistics New Zealand. He previously worked in senior management roles in the Department…

Regulatory Reform Minister, Paul Goldsmith, and Parliamentary Under-Secretary for Regulatory Reform, David Seymour, say changes to Regulatory Impact Analysis (RIA) requirements will lead to better informed decision making by Parliament and the Government. “Our laws and regulations have a profound effect on our economic performance, the operation of business, and the well-being of every New Zealander,” says Mr Seymour. “High quality policy advice is the foundation of robust government decision-making. Poor quality regulation unnecessarily increases the costs of doing business and reduces New Zealanders’ freedom. “Although the quality of RIA from government departments has improved over time, it is still…

The Reserve Bank today released a new edition of its popular guide to managing the risks involved in saving and investing. ‘Upside, downside: A guide to risk for savers and investors’ was commissioned by the Reserve Bank and written by investment commentator Mary Holm for ordinary New Zealanders. Since original publication in 2012 the guide has received two significant revisions to take account of changing KiwiSaver rules and other developments. “I’m delighted to be able to bring this book up to date for 2017 and beyond, and hope the updated version proves as useful for a wide range of New…

Leading credit rating agency Moody’s Investors Service has reaffirmed New Zealand's highest possible Aaa sovereign credit rating with a stable outlook, highlighting the country's high economic resilience, effective policy making and very strong fiscal position. "The latest Moody's credit rating statement is a very positive endorsement of New Zealand's economic performance and the Government's policy settings," Finance Minister Steven Joyce says. "Moody's expects that New Zealand will be one of the fastest-growing Aaa rated economies over the next few years. It notes that New Zealand's strong population growth, including through immigration, lifts the country's economic potential. “The Agency also notes…

Statement by Reserve Bank Governor Graeme Wheeler: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Macroeconomic indicators in advanced economies have been positive over the past two months. However, major challenges remain with on-going surplus capacity in the global economy and extensive geo-political uncertainty. Global headline inflation has increased, partly due to a rise in commodity prices, although oil prices have fallen more recently. Core inflation has been low and stable. Monetary policy is expected to remain stimulatory, but less so going forward, particularly in the US. The trade-weighted exchange rate has fallen 4…

The Government’s books are better than expected, with a $1.1 billion OBEGAL surplus for the seven months to January, Finance Minister Steven Joyce says. “Stronger tax revenues as a result of a healthier economy are flowing through to the Government’s financial performance,” Mr Joyce says. Tax revenues year-to-date are 3.8 per cent more than they were predicted to be in Budget 2016. “Company tax in particular is higher than expected, and that reflects the good performance of New Zealand companies in what is still an uncertain world,” Mr Joyce says. The $1.1 billion OBEGAL surplus compares to Treasury’s forecast of…

An upcoming review of banks’ capital requirements will continue to ensure confidence in the solvency of the New Zealand banking system, while encouraging efficiency, Reserve Bank Deputy Governor Grant Spencer said today. During a speech to the New Zealand Bankers Association in Auckland, Mr Spencer outlined the context and scope of the review of bank capital that the Reserve Bank will undertake over the next year. Mr Spencer also set out broad principles that will guide the Review, centred on simplicity and conservatism. Mr Spencer said in the wake of the global financial crisis, banks and regulators around the world…

The Reserve Bank will continue to engage with stakeholders about its proposed ‘Dashboard’ approach to quarterly disclosure for locally incorporated banks. The dashboard aims to enhance market discipline by making key information on locally incorporated banks available on the Reserve Bank website in a timely manner and in an accessible format which can facilitate comparisons across banks. The Reserve Bank ran a consultation on the dashboard concept last year, and has today published a summary of submissions. Deputy Governor Grant Spencer said all 18 submitters were supportive of the Reserve Bank’s objective to improve the effectiveness of public disclosures by…

Statement by Reserve Bank Governor Graeme Wheeler: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. The recovery in commodity prices and more positive business and consumer sentiment in advanced economies have improved the global outlook. However, major challenges remain with on-going surplus capacity in the global economy and rising geo-political uncertainty. Global headline inflation has increased, partly due to rising commodity prices. Global long-term interest rates have increased. Monetary policy is expected to remain stimulatory, but less so going forward, particularly in the US. New Zealand’s financial conditions have firmed with long-term interest rates…

The Government's 2017 Budget will be delivered on Thursday 25 May, and will be centred on providing opportunities for all Kiwis to get ahead, Finance Minister Steven Joyce says. "The 2017 Budget will build on the strengthening performance of the New Zealand economy over the last several years. It will focus on creating the conditions for further growth and greater prosperity for all New Zealanders," Mr Joyce says. "New Zealand businesses have generated 328,000 new jobs since 2008, and average weekly wages have grown by 26.1 per cent – more than double the rate of inflation. Budget 2017 will seek…

The exchange rate hit a two year high on the Trade Weighted Index (TWI) last week. Our consistently overvalued exchange rate continues to be an issue for the competitiveness of manufacturers and the wider tradable sector, and we need to investigate ways to bring it back to a sustainable level over time, say the New Zealand Manufacturers and Exporters Association (NZMEA). NZMEA Chief Executive Dieter Adam says, “The exchange rate hit a two year high on the TWI last week, and while it has dropped back less than a cent since, it remains at a level that damages the competitiveness…