Which New Zealand institution became the country’s central bank when it was established in 1934?
Answer
Reserve Bank of New Zealand
The Reserve Bank of New Zealand became the country’s central bank when it was established in 1934.
It was created by the Reserve Bank of New Zealand Act 1933 and began operating on 1 August 1934. Before its creation, New Zealand’s currency and banking system lacked a dedicated national central-bank institution.
The Reserve Bank issues New Zealand banknotes and coins, implements monetary policy, and works to support financial stability. Since 1990, its monetary-policy framework has been centered on an inflation target agreed with the government, making New Zealand an early adopter of formal inflation targeting.
The institution is independent in its operational decisions, but its objectives and framework are set through legislation and agreements with the government. It should not be confused with Bank of New Zealand, a commercial bank founded in 1861.