This means that the  BIS central bankers’ speeches  3  OCR can be set at a lower level than would be the case if the exchange rate had not appreciated as strongly. Figure 3: Tradables and non-tradables inflation  Source: Statistics NZ In assessing whether to intervene in the exchange market, we apply four criteria.
Financial intermediation can be judged as being functioning smoothly, as evidenced by the fact that financial institutions have been maintaining capital bases that are adequate to meet  7  firms' demand for funds, and that the Tankan surveys have shown favorable levels both in terms of lending attitudes among financial institutions and the financial positions of firms (Chart 17).