New Zealand Legislation: Acts

12 Bank may be directed to formulate and implement monetary policy for different economic objective

• (1) The Governor-General may, from time to time, by Order in Council, on the advice of the Minister, direct the Bank to formulate and implement monetary policy for any economic objective, other than the economic objective specified in section 8, for such period not exceeding 12 months as shall be specified in the order.

  (2) Notwithstanding anything in section 8, the Bank shall formulate and implement monetary policy in accordance with any economic objective specified in an Order in Council in force under subsection (1).

  (3) The Governor-General may, by Order in Council, on the advice of the Minister, before the period specified in an Order in Council made under subsection (1) expires, extend the period specified in that order for a period, which shall be specified in the order, not exceeding 12 months, and may in the same manner extend that period on successive occasions.

  (4) Every Order in Council made under subsection (1) shall expire with the close of the last day of the period specified in the order or any extension of that period.

  (5) An Order in Council made under subsection (1) may be revoked.

  (6) The Minister shall, as soon as practicable after the making of an Order in Council under this section, publish a copy of the order in the Gazette and lay a copy of the order before the House of Representatives.

  (7) While an Order in Council made under subsection (1) remains in force,—

  • (a) the policy targets fixed under section 9 shall cease to have effect; and

  • (b) the Minister and the Governor shall,—

    • (i) within 30 days of the making of the order, or the making of an Order in Council under subsection (3), as the case may be, fix new policy targets for the period that the order remains in force; and

    • (ii) within 30 days of the expiry or revocation of the order, fix new policy targets for the carrying out by the Bank of its primary function.

  (8) Subsections (4) and (5) of section 9 shall apply in relation to any policy targets fixed under subsection (7)(b) of this section.