Having these tools ready, should we need them, will mean we can continue to contribute to a stable economic environment should the OCR reach zero. By getting this work done now and publishing our analysis, we can provide more certainty to the public over our ability to respond to any future downturns.
We have also come to appreciate the increasing importance of stepping up our coordination with New Zealand’s fiscal authorities (the New Zealand Treasury) during unconventional times. Since 2018, an observer from Treasury has attended meetings of the Monetary Policy Committee as a non-voting member. The purpose of this initiative is to improve the flow of information between agencies.