Central Banks globally are now grappling with high imported prices that have proved persistent. New Zealand’s monetary policy has no direct influence on these imported global prices, other than indirectly – and even then unreliably – via the level of the New Zealand dollar exchange rate.
The BSP’s exit strategy will begin with the recalibration of the BSP’s monetary operations to 3/4  BIS central bankers' speeches  ensure that our accommodative monetary policy translates to short-term interest rates. Next, we unwind liquidity-infusing measures, such as provisional advances to the government and alternative compliance with reserve requirements.