RBNZ Governor Adrian Orr said in a speech that “monetary policy has been effective to date in supporting both inflation and employment as intended – at least at the aggregate level.”
New monetary policy tools will become “increasingly mainstream” in environment of low global inflation and low neutral interest rate.. But “price stability and contributing to maximum employment remain the targets for monetary policy,” after all.
Orr also reiterated that RBNZ “focused on being operationally ready to implement a negative OCR if necessary”. But, “its actual use will always depend on the economic context at the time, and its relative efficacy.”
