Without further climate policies, the most vulnerable 10% of banks may see a 30% increase in the average probability of default of their credit portfolios between now and 2050. We will also accelerate the development of new models and tools to incorporate the impacts of climate change and related policies into our regular monitoring of the economy.
No, there is no quick or easy way to reverse the recent decline in the New Zealand dollar. We need to recognise that a significant part of the depreciation since early 1997 has simply been the reversal of an over-valued currency at that time, and as such has been desirable.