RBNZ Governor Adrian Orr told the Finance and Expenditure Committee today that it’s “pleasing how resilient the New Zealand economy has been”, during a “period of weakening global growth and heightened global uncertainty”. He added that monetary policy is “in a good position”, with inflation at the “mid-point of our inflation target”. Employment is also “at, or slightly above” maximum sustainable employment.
Orr also said, RBNZ is “well advanced on understanding how we would meet our monetary policy mandate should we approach zero interest rates.” The central bank will publish work on these alternative monetary policy approaches in the coming weeks, “even if we don’t expect to be using them”.
