In the face of these conflicting signals, we judged that the best approach was to hold interest rates steady while we obtained a clearer picture of the direction of the economy. It was relatively clear, though, that if the GDP data were giving the better signal – and the labour market eventually softened – lower interest rates would likely be appropriate.
How can the Reserve Bank best contribute to New Zealand’s economic prospects? There are two main ways. BIS central bankers’ speeches  3  The first is by delivering price stability and reducing the risk of inflation surprises. Price stability, and expectations that future inflation will be both low and stable, contribute to economic growth in several ways.