Under its remit, the MPC is responsible for maintaining a stable general level of prices over the medium term and supporting maximum sustainable employment.
The MPC is made up of 4 internal RBNZ members and 3 external members. Monetary policy decisions, such as setting the Official Cash Rate, are made by the 7 members of the committee.
MPC appointments are made by the Minister of Finance, on the recommendation of our Board.
The new MPC members will replace current members Caroline Saunders and Peter Harris when their terms end in 2024. Mr Harris’ term ends on 31 March 2024 and Professor Saunders’ term ends on 30 June 2024.
Board chair Neil Quigley said that “suitably qualified candidates will be interviewed later this year and assessed against the appointment criteria, then the names of candidates recommended by the Board, will be provided to the Minister of Finance after the General Election.”
Applications will be assessed by the MPC Appointments Committee against various criteria including:
- expertise in monetary policy and macroeconomics (including those carrying out ongoing research in these areas),
- relevant professional knowledge, skills and experience in public policy and banking.
Applicants will require a strong understanding of conflicts of interest, the sensitivity associated with “inside knowledge” of monetary policy decisions, and the constraints on other activities that are necessarily associated with membership of the MPC.
“The final appointment decisions and timing is up to the Minister, but we expect appointments to be announced by early 2024,” he said. After the 2 new MPC members are inducted, they will officially begin their appointments on 1 April or 1 July 2024, respectively.
