RBNZ governor to take more advice and make more speeches
Reserve Bank governor Graeme Wheeler will heed the advice of his lieutenants in making major policy decisions and will make more public appearances.
The central bank is establishing a governing committee made up of himself, his two deputy governors, Grant Spencer and Geoff Bascand, and assistant governor John McDermott to "discuss all major monetary and financial policy decisions falling under the bank's responsibilities", Mr Wheeler said in a speech to The University of Auckland's business school today.
The new model is the same framework as the Bank of Canada's.
"To date, individual governors have taken responsibility for certain areas of the bank, such as operations, monetary policy and financial stability," he said. "Governors will have more individual and collective involvement in key decisions taken across all areas of the bank."
The bank will also expand its on-the-record speaking with more speeches, across broader topics and from a wider array of people, Mr Wheeler said. In doing that, the bank will also become "more selective" in the off-the-record briefings and on-the-record press conferences it provides.
He stressed the importance of transparency to achieve policy goals because of the central bank's ability to shift markets and the need to be well understood.
In doing that, the bank is "seeking to avoid unnecessary instability in output, interest rates and the exchange rate".