As this occurs, the Reserve Bank’s focus will move away from the provision of emergency support, and towards ensuring that the degree of economic stimulus provided is appropriate for achieving our medium-term policy aims. Uncertainty about the state of the economy following the earthquakes has been very high.
Over the past year, we have been engaged in a process of ongoing learning about the state of the economy following the earthquakes that has fed into our policy deliberations. This process will continue for an extended period, even as the economy continues to recover, although our focus will gradually shift.