Debt-to-Income-limit-consultation

Debt-to-Income-limit-consultation

The Reserve Bank today published a consultation paper seeking feedback on serviceability restrictions such as debt to income (DTI) limits being added to its macro prudential toolkit.

The Bank is seeking feedback from stakeholders on:

Monetary-Policy-Challenge-national-finalists-announced

Monetary-Policy-Challenge-national-finalists-announced

A record number of entries to the Reserve Bank’s Monetary Policy Challenge resulted in tough competition with six schools selected for the national final.

The annual competition attracted entries from 53 secondary schools from across New Zealand to step into the shoes of a Reserve Bank economist.

Renewed-Policy-Targets-Agreement-signed

Renewed-Policy-Targets-Agreement-signed

Finance Minister Steven Joyce and incoming Acting Reserve Bank Governor Grant Spencer today signed a renewed Policy Targets Agreement (PTA), which sets out specific targets for maintaining price stability.

The Policy Targets Agreement takes effect on 27 September 2017, after Reserve Bank Governor Graeme Wheeler completes his term on 26 September 2017.

New-Zealand's-financial-system-is-sound-but-continues-to-face-risks

New-Zealand's-financial-system-is-sound-but-continues-to-face-risks

New Zealand’s financial system remains sound and the risks facing the system have reduced in the past six months, Reserve Bank Governor Graeme Wheeler said today when releasing the Bank’s May Financial Stability Report.

“The outlook for the global economy has been improving but global political and policy uncertainty remains elevated and debt burdens are high in a number of countries. A sharp reversal in risk sentiment could lead to higher funding costs for New Zealand banks and an increase in domestic borrowing costs. New Zealand’s banks are vulnerable to these risks because of their increasing reliance on offshore funding for credit growth,” Mr Wheeler said.

RBNZ-and-FMA-welcome-new-foreign-exchange-market-Global-Code-of-Conduct

RBNZ-and-FMA-welcome-new-foreign-exchange-market-Global-Code-of-Conduct

The Reserve Bank and Financial Markets Authority welcomed the release of a new code to promote good practice in the international foreign exchange market.

The new Global Code of Conduct for the Foreign Exchange Market was released in London by the Bank for International Settlements last night. It was developed by central banks and foreign exchange market participants from 16 international jurisdictions.

Reserve-Bank-renews-currency-swap-facility-with-People's-Bank-of-China

Reserve-Bank-renews-currency-swap-facility-with-People's-Bank-of-China

The People's Bank of China (PBOC) and the Reserve Bank of New Zealand today announced the renewal of a reciprocal currency arrangement (swap line) to support the settlement of cross border transactions between New Zealand and Chinese businesses.

The arrangement, first agreed in 2011, aims to promote bilateral trade and direct investment for economic development between the two countries. The size of the swap facility is RMB 25 billion (NZD 5 billion) and it has a three year maturity which may be extended if both parties agree.

New-Zealand-hosts-EMEAP-central-bank-governors

New-Zealand-hosts-EMEAP-central-bank-governors

The Reserve Bank of New Zealand hosted the 22nd annual Executives' Meeting of East and Asia-Pacific (EMEAP) central banks in Auckland yesterday.

EMEAP is a co-operative forum of eleven central banks and monetary authorities in the East Asia and Pacific region comprising the Reserve Bank of Australia, the People’s Bank of China, the Hong Kong Monetary Authority, Bank Indonesia, the Bank of Japan, the Bank of Korea, Bank Negara Malaysia, the Reserve Bank of New Zealand, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore and the Bank of Thailand.

The-value-of-forecasting-in-an-uncertain-world

The-value-of-forecasting-in-an-uncertain-world

Forecasting is a valuable part of the monetary policy process, helping the Bank plan for the future, communicate its current understanding and intentions, and react to unexpected events, Reserve Bank Assistant Governor and Head of Economics Dr John McDermott said today.

During a speech to the New Zealand Manufacturers and Exporters Association (NZMEA) in Christchurch, Dr McDermott outlined the reasons why the Bank regularly produces and publishes forecasts and Official Cash Rate (OCR) projections.

IMF-releases-New-Zealand-FSAP--findings-and-recommendations

IMF-releases-New-Zealand-FSAP--findings-and-recommendations

The International Monetary Fund (IMF) has declared New Zealand’s banking system to be resilient, but nevertheless recommended ways to improve the strength of the country’s financial sector and the regulatory framework.

In releasing the findings from its Financial Sector Assessment Programme (FSAP) overnight, the IMF said that the banking system is well-placed to manage risks and vulnerabilities associated with current developments in the housing sector, the high level of household debt, and low dairy prices. The FSAP included a range of ‘stress tests’ of the large New Zealand banks.

Enhanced-oversight-framework-for--financial-market-infrastructures

Enhanced-oversight-framework-for--financial-market-infrastructures

Cabinet has agreed to a new legislative framework that will improve regulation of payment systems and other Financial Market Infrastructures (FMIs).

The new framework comes after a detailed review by the Reserve Bank of FMI regulation. The review included three public consultations in the last four years.