Figure 7: Mahi Tahi: Working together to ensure cash-flow and confidence  Source: Mahi Tahi: Working together to ensure cash-flow and confidence (PDF 318KB)  Our actions assisted the New Zealand economy to remain on track to experience low and stable consumer price inflation, a lower unemployment rate than otherwise, a New Zealand dollar exchange lower than otherwise, and ongoing financial stability.
Our debt and foreign exchange markets also performed robustly and our financial system remains sound. Same challenge, new tools Again, as in many OECD countries, at the outset of the COVID-19 pandemic New Zealand’s nominal interest rates were approaching an effective lower bound. Globally, as inflation and inflation expectations have declined, so have nominal interest rates.