FX.co ★ NZ's Willis Urges RBNZ to End Summer Break, Hold More Rate Meetings

New Zealand's Finance Minister, Nicola Willis, has called upon the Reserve Bank of New Zealand (RBNZ) to increase the frequency of its monetary policy meetings and eliminate its 12-week summer recess, describing the interval as "a long time to go between meetings." In an interview with Bloomberg News, Willis pointed out that central banks in countries such as England, Canada, Australia, and the United States observe shorter intermissions and convene more regularly. She suggested that the RBNZ should align with this precedent by holding eight meetings annually. Presently, the RBNZ conducts seven rate-setting gatherings each year, which is fewer compared to its international counterparts. The bank has, as of now, not issued a response to this suggestion. Since 2016, the RBNZ has refrained from making decisions between November and February. Treasury advice, made available under the Official Information Act, echoed Willis' concerns, indicating that the RBNZ's prolonged break is atypical. The advice further noted that "more frequent decisions would enable the Bank to respond more adeptly to economic changes." The Treasury suggested that Willis address this matter directly with RBNZ leadership, offering support if needed.