7 October 2025 – The Board of the RBNZ will form a new committee of the Board called the Financial Policy Committee (FPC). The FPC will be given authority to make key policy decisions relating to financial stability, including setting the prudential requirements for financial institutions regulated by the RBNZ, and making macro-prudential policy decisions such as Debt-to-Income and Loan-to-Value ratios for lending.  

The FPC will consist of the RBNZ Board Chair, the Governor, three other RBNZ Board members, and up to two members who are not RBNZ Board members or employees of the RBNZ. The external members will be recognised experts in fields relevant to the FPC's work.

The RBNZ Board Deputy Chair, Rodger Finlay, said: “The creation of the FPC will strengthen financial policy making at the RBNZ, with greater focus and expertise brought to bear to make sure that the New Zealand financial system remains strong and stable.”

“The decision to create the FPC followed engagement with the Treasury and Minister of Finance on ways to apply greater expertise and experience to financial policy decisions. A committee with formal policy decision-making authority from the RBNZ Board and credible external experts was seen to achieve this outcome.”

“Service on the FPC is a great opportunity to be at the heart of financial policy making. We look forward to receiving applications from experts who can give us independent perspectives and constructively challenge policy proposals,” Mr Finlay said.

The move to create the FPC is in line with recommendations from the Finance and Expenditure Committee's recent Inquiry into Banking Competition to enhance the RBNZ's financial policy making.

The RBNZ will soon put out a call for suitably qualified candidates to apply for the two available positions as external FPC members.

The FPC's decisions will be subject to oversight by the full RBNZ Board and is planned to be operational from early 2026.

AUCKLAND – 7 October 2025 – Nearly 75% of Kiwis who rent are dissatisfied with the housing choices available to them. That's a key finding of the New Zealand Housing Survey, a study released today by The Urban Advisory, a leader in urban strategy and planning. The study finds that Kiwis are demanding more housing choices, including options such as co-housing, rent-to-buy, residential co-operatives, community land trusts and shared ownership models, as poor housing mobility and unaffordability bite.

A diverse housing future is needed to serve the diverse needs of New Zealanders

Key findings include:

• There is a strong appetite for alternative housing models, with co-housing the top option with 59% support
• Most renters expect their next move will be by choice, but nearly 20% anticipate being forced to move
• Nearly 75% of renters expressed dissatisfaction with the housing options available to them
• 53% of non-homeowners said they didn't own a home because they 'can't afford to buy anywhere'.

Wrong house, wrong place

The report shows there is broad support for diversified housing products, suggesting that, by sticking to a limited number of traditional housing models, developers may be missing opportunities to create the housing and spaces Kiwis desire.

New Zealanders are increasingly prioritising choice in housing type and tenure. This flexibility across life stages is seen as equally important as overall supply. Older adults seeking to downsize, financially stretched households, and those seeking culturally grounded housing have few options.

The following types of structure were supported by respondents:

• Co-housing (59%)
• Community land trusts (29%)
• Residential co-operatives (32%)
• Shared Ownership (23%)
• Rent to buy (34%)
• Built to rent (19%).

While New Zealand's housing continuum encompasses public housing to market ownership, the reality is that there is significant under supply of housing options in the middle of the continuum. New Zealand has few assisted housing programmes or community living tenures available and it is impacting housing supply, the rental market, and the ability for many of eventually attaining home ownership. It also means that if people aren't able to afford market rental and ownership products, they are forced on to the social housing register rather than having options before reaching the level of need.

“This limited housing diversity means that many New Zealanders are underserved, particularly in the assisted sector of the housing continuum,” says Dr Natalie Allen, Managing Director at The Urban Advisory.  “This gap is a critical issue because secure tenure is foundational to positive social and economic outcomes for people. The lack of options poorly serves this 'missing middle' and they are key segments of the population that include our rapidly aging population, Māori and Pacific Island peoples and the key workers that keep our towns and cities going”.

Options that could be on the housing continuum in New Zealand

Sacrifices made

Nearly 60% of all respondents said they had to make at least one compromise or sacrifice to meet the rising cost of living.

• Delaying access to medical services (24%)
• Sacrificing family gatherings or holidays (24%)
• Not heating or cooling the home as much as needed (23%)
• Sacrificing recreational activities (22%)
• Economising on food, e.g. skipping a meal (21%).

Nearly a third of respondents reported that meeting their cost of living required them to make more than three sacrifices or compromises.

The primary financial reasons renters gave for not planning to own their next home were:

• 53% said they can't afford to buy anywhere
• 41% said they can't afford to buy where they want to live
• 39% said houses are not worth the prices
• 30% said they were saving for a deposit, but that it is hard when living costs are so high.

The situation is worse for renters; nearly 75% express dissatisfaction with the housing options available to them. And while 75% of homeowners “strongly agree” that their home is stable and secure, only 30% of renters feel the same. Most renters expect their next move will be by choice and 47% plan to move in the next year. However, nearly 20% anticipate being forced to move.

“These statistics highlight the stark disparities in housing experiences across Aotearoa. For some, a lack of housing mobility means they're stuck in place, even when they want or need to move. For many others, constant relocation is the norm, driven by the absence of affordable, suitable options. This instability has far-reaching consequences, directly affecting educational attendance, academic outcomes, and economic productivity.” says Allen.

With aging come challenges

For those aged 65+, satisfaction with their current living situation leads to a strong desire to 'age in place'. Among those aged 75 and over, 91% say their housing feels “stable and secure”, and 64% say they “don't intend to ever move.” Even among those aged 65–74, 37% share that view. While this stability is positive for individuals, it means fewer homes are freed up for younger families –especially as many older homeowners choose to stay in larger homes rather than downsize.

“The early data is telling us that when older New Zealanders say they want to age in place, many actually mean age in their community amongst their support networks, friends, and family. It does not necessarily mean age in their current dwelling. Many want to downsize and stay in the area, but finding suitable housing options is hard. We can see that even those with means will only downsize given the right circumstances,” says Allen.

Those over 65 years of age want the right services and facilities nearby, and the data show the most important are:

• Medical care 94%
• Local food providers and supermarkets, both at 93%
• Community facilities, and parks and nature, both at 90%
• Public transport at 83%.

Additional insights from the survey

• Homeowners, more than renters, strongly agreed that their home or housing situation is safe and secure (75% vs. 30% respectively)
• The supply of quality townhouses close to amenities has not kept pace with the rapid increase in their popularity: 59% of respondents would consider living in a townhouse but only 36% do. Planners and developers should note that this unmet demand for townhouse supply
• Neighborhood features are a key consideration for over 40% of Kiwis when choosing a place to live, with the highest priorities being safety from crime and proximity to services and amenities such as schools and public transport.

06 October 2025 – The Reserve Bank of New Zealand – Te Pūtea Matua has today published its Annual Report covering the year from 1 July 2024 to 30 June 2025.

Our Annual Report shows our capability-building and has been designed to report against the Statement of Intent for 2024-28.

Deputy Board Chair Rodger Finlay says that a great deal has been achieved by the Reserve Bank of New Zealand over the past year towards the delivery of its mandated functions.

“The Reserve Bank continued to support the New Zealand economy in navigating challenging economic conditions in the external environment both domestically and internationally. This included consumer price inflation falling back to within the Monetary Policy Committee's target band of 1 to 3 percent during the financial year.”

Highlights this year also include the ongoing implementation of the Deposit Takers Act 2023 (DTA), the launch of the Depositor Compensation Scheme (DCS), revised access criteria for the Exchange Settlement Account System (ESAS), our submission to Parliament's FEC Inquiry into Banking Competition, and the current review of key regulatory capital settings for deposit takers.

“A long-term strategic focus for the Reserve Bank is strengthening efficiency and competition, enabling a financial system where competition drives innovation and inclusion,” Mr Finlay says.  

The past year has also seen wide ranging changes for the Reserve Bank. In particular, the departure of Adrian Orr as the Governor of the Reserve Bank in March 2025, and the resignation of Neil Quigley as Board Chair in August 2025.

The Board also agreed to a new Five-Year Funding Agreement with the Minister of Finance. Since then, the Board has worked with the Reserve Bank's leadership team to redesign our ways of working and optimise our resources while continuing to deliver on our mandates.

Governor Christian Hawkesby says that significant organisational changes have taken place in the Reserve Bank's structure, operating model, ways of working, and prioritisation.

“We are in the process of implementing a new organisational structure, making us fit for purpose and able to sustainably deliver on our mandates within our new operating environment,” Mr Hawkesby says.

The year ahead provides an opportunity to shape the Reserve Bank's future with a renewed focus on effectively and efficiently delivering the Reserve Bank's economic, financial stability and central banking objectives.    
 
More information:

Annual Report 2025 – Reserve Bank of New Zealand – Te Pūtea Matua: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=5b3a9ca73b&e=f3c68946f8
Statement of Intent 2024 – 2028 – Reserve Bank of New Zealand – Te Pūtea Matua: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=2e7a575d2d&e=f3c68946f8
Statement of Performance Expectations (SPE) 2025/26 – Reserve Bank of New Zealand – Te Pūtea Matua: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=b1c62a1383&e=f3c68946f8

Source: Soil & Health Association of New Zealand
 
Aotearoa New Zealand – The Soil & Health Association of New Zealand welcomes the end of animal genetic engineering trials that have taken place at AgResearch's Ruakura facility for more than two decades.
 
“These experiments caused immense animal suffering and should never have been allowed to happen,” said Charles Hyland, chair of Soil & Health.

The Association applauds GE Free NZ for exposing the scale of the harm. Their report, based on AgResearch's own annual statements, documents spontaneous abortions, cancers, deformities and other adverse effects on cattle, sheep and goats.

“After 25 years and tens of thousands of dollars of public money, these experiments have delivered no benefits,” Hyland said. “We are deeply concerned they could resume if the proposed Gene Technology Bill is passed. Animals must not be subjected to such cruelty again.”

“New Zealanders – and our overseas markets – expect high animal welfare standards and food that is healthy, ethical and safe. The future lies in organic and sustainable food and farming.”

 
FURTHER INFORMATION: Genetically Engineered Animals in New Zealand 2010 – 2025: Part 2 – The second fifteen years (GE Free NZ): https://soilandhealth.org.nz/civicrm/mailing/url/?u=1199&qid=76672

The Government’s decision to means test the families of 18- and 19-year-olds before they qualify for Jobseeker support will unfairly punish young people with intellectual disability and families already struggling to make ends meet.

From November 2026, households earning over $65,000 will be expected to financially support their 18- or 19-year-old teenagers before those young adults can access Jobseeker or an equivalent Emergency Benefit.

IHC Director of Advocacy Tania Thomas said the policy seemed to have been developed without any consideration for young people with disabilities and their families.

“Families with children who have disabilities already face higher living costs, and this new rule assumes a one-size-fits-all level of parental support that simply doesn’t exist,” Tania said.

The change comes as research continues to show the deep and persistent financial hardship experienced by families that include a person with an intellectual disability. IHC’s Cost of Exclusion report found that families supporting a child with intellectual disability are much more likely to experience long-term poverty and hardship.

“Setting a hard cut-off at $65,000 treats all families as if they face the same costs, no matter where they live in NZ or what extra needs their teenager has ” Tania said. Policy needs to reflect those realities.”

Many young people with intellectual disability want to work but there is insufficient support to assist them into employment. IHC’s data from a forthcoming report shows the odds are already stacked against them. Compared to the non-intellectually disabled population, people with intellectual disability are:

more than five times more likely to have no qualifications
73% less likely to be employed
More than three times  more likely to not be in education, employment, or training
More than 1.2 times more likely to have one parent not in full-time employment.

Tania said IHC’s data also shows that people with intellectual disability experience disproportionately high levels of deprivation, from struggling to pay unavoidable bills and afford food, to being unable to heat their homes or take a holiday. Nearly half could not pay an unavoidable bill within a month without borrowing, compared with 18 percent of the general population, she said.

“This policy change ignores the reality that many of these families are already doing everything they can,” Tania said. “What’s needed is investment in meaningful employment opportunities and targeted financial support, not new barriers.”

IHC is calling on the Government to review the proposed parental income test and develop an individualised eligibility process that recognises the unique care and financial needs of young people with disabilities and their families.

Editor’s Note:

60% of the Intellectually Disabled population have no qualification vs 11% in the general population
21% of people with Intellectually Disability have paid employment compared to 77% of the general disabled population
41% of young people with Intellectually Disability are not in education, employment, or training compared to 14% of young people in the general population
67% of children with an Intellectually Disability have only one parent working full-time vs 56% of children in the general population.

About IHC New Zealand

IHC New Zealand advocates for the rights, inclusion and welfare of all people with intellectual disabilities and supports them to live satisfying lives in the community. IHC provides advocacy, volunteering, events, membership associations and fundraising. It is part of the IHC Group, which also includes IDEA Services, Choices NZ and Accessible Properties.

Smart devices that utilise artificial intelligence have enormous potential to treat heart disease and, with strategic investment, NZ could be at the forefront.

Smart devices that utilise artificial intelligence have enormous potential to treat heart disease and, with the right investment, Aotearoa, New Zealand could be at the forefront, says a leading scientist at Waipapa Taumata Rau, University of Auckland.