Thursday, 29th October, 2020

The RBNZ’s job just got a lot trickier than usual.  The RBNZ has multiple jobs to juggle – it has its Monetary Policy objectives - a dual target of inflation and maximum sustainable employment.  But at the same time, it must also balance Financial Stability Risks. Most of the time, it can juggle both responsibilities, as the various risks move together through the economic cycle so relaxing Monetary Policy settings does not conflict with the RBNZ’s Financial Stability goals. However, there was no modern precedent for the COVID-19 pandemic, and during this highly unusual time we are all learning as we go. Read the full report here.