‘Coordination of Monetary Policy and Macro prudential Policy’. Speech delivered to Credit Suisse Asian Investment Conference in Hong Kong. 7  Because investor’s mortgage interest payments are tax deductible and those of an owner occupier are not, investors face a lower cost of capital than owner occupiers.
BIS central bankers’ speeches  7  viii)  Future challenges  Considerable progress has been made in reducing inflation and lowering inflation expectations since the introduction of the RBNZ Act. However, the implementation of monetary policy continues to pose many challenges. These relate to the difficulties in fully understanding economic linkages and assessing the need for and scale of policy change.