Central bank breaks with a 22-year tradition by keeping the Governor's first speech of the year behind closed doors

Central bank breaks with a 22-year tradition by keeping the Governor's first speech of the year behind closed doors

The Reserve Bank Governor's traditional scene setting first speech of the year is to be a private event for the first time. And that's even though the central bank says it will not contain any new information about monetary policy.

Reserve Bank governors have been making public speeches to the Canterbury Employers Chamber of Commerce since 1995. In past years the Reserve Bank has even held a lock-up in Wellington allowing reporters to read an embargoed copy of the speech and news release ahead of time.

However, this year's speech, and presentation from Graeme Wheeler, next Thursday, January 26, will be off-the-record and not published on the central bank's website.

A Reserve Bank spokesman says this is due to it's close proximity to the February 9 Official Cash Rate review and Monetary Policy Statement (MPS). But also because of its timing, the Reserve Bank says the presentation won't contain new information about monetary policy.

"This speech has run publicly since its inception in 1995. With the new MPS timetable adopted last year, it’s just too close now to risk confusing markets two weeks beforehand," a Reserve Bank spokesman told interest.co.nz.

"So this Canterbury event now fits into the family of over 100 off-the-record presentations we give around the country explaining already published information. They’re off-the-record so as not to be confused with new monetary policy information and assessments. Our published speeches are more driven by dynamic strategic communication needs than by the coincidence of a host’s event timing." 

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

17 Comments

Comment Filter

Highlight new comments in the last hr(s).

I didn't know the RBNZ can change the rules as it pleases. That's unacceptable and I don't understand why it would not make it's speech public especially if it, as they say, "won't contain new information about monetary policy" It just looks bad on the RBNZ

Is the intention to spark lots of wild rumours about the contents of the speech? Because that's what'll happen.

Why have a "speech" then?

snap

so the host can charge $100 a ticket I suppose

.

Too much criticism of the RB in the past?
Or perhaps an acknowledgement that the commercial banks are now disconnected from any RB settings or signals.
2017 scenarios:
RB cuts OCR, banks hike.
RB no change, banks hike
RB hikes OCR, banks hike
Perhaps only political pressure can help the mortgagebelt indirectly.

The markets aren't confused but apparently the muddled thinking at RBNZ is. Perhaps the Governor needs me to explain economics to him. Someone find the coloured wooden blocks.

The Reserve bank affects family home owners and small to medium bussiness whom would like to sue the Reserve bank for damages since halting the market since the pre October LVR and for influencing major trading banks monopoly behind the scenes to restrict lending.

The Reserve Bank Governor wants to secretly destroy the economy and will acheive his goal behind closed doors.

More spray and walk away from Ted.

but somebody always takes the bait and disobeys rule 1.'dont feed the trolls'

I think that "ted Stanton" must be a non-de-plume,as English does not seem to be his first language.

Why give a speech if you do not have anything to say and/or whatever you say you do not want anyone to know.

If have to read a speech and want no one to know, can also read in front of the mirror at home to be safe otherwise may be leaked.

The RBNZ prides itself on being one of the most transparent central banks , according to mcDermott in a speech given some 15 months ago. The financial markets appreciate transparency said mcdermott. .The papers that we produce , funded by the taxpayer show how important transparency is. One look at the OCR , shows how inept our central bank has become.with woeful forecasting and OCR meetings that would be better managed by Daffy Duck.

I wonder if this will be included in the speech, if this government wont stop non citizens buying the RB has decided they must try
the Reserve bank just issued a policy instructing banks to not include any foreign income into debt servicing requirements, even for NZ citizens.

"This speech has run publicly since its inception in 1995. With the new MPS timetable adopted last year, it’s just too close now to risk confusing markets two weeks beforehand," a Reserve Bank spokesman told interest.co.nz.

Markets are rarely confused. The same cannot be said about those observing and commenting about them.

Witness the latest evidenceless central banker outburst.

Mario Draghi called on Germany to be calm as the European Central Bank keeps pumping stimulus into the euro area, saying rising inflation will eventually bring higher interest rates for savers.

“As the recovery will firm up, rates will go up as well,” the ECB president told reporters in Frankfurt on Thursday after the Governing Council reaffirmed its intention to keep its bond-buying program going until at least the end of the year. Asked about German criticism of the strategy, he said “the honest answer would be: Just be patient.” Read more

The RBNZ governor may also wish to reiterate, better said behind closed doors, indefensible delusions that banks intermediate savers money, possibly held in another place until they are called upon, to underwrite the lending process.

Witness the most recent public version of the claim.

However, banks in New Zealand appear to be relatively efficient in the core intermediation role of receiving money in the form of deposits and recycling that money via loans to creditworthy borrowers. Read more