While the operational backgrounds differ for these tools, they all act to lower the interest rates faced by households and businesses so as to incentivise spending and investment and keep the NZ dollar exchange rate lower than otherwise. These actions aimed to head off unnecessarily low inflation or deflation and unnecessarily high and persistent unemployment resulting from the COVID-19 economic shock.
Recently, the pace of economic growth has moderated somewhat, which in part relates to temporary factors and possibly some pull-back from last year’s strong growth. In addition, concerns about trade protectionism may have dampened business sentiment and 4/7  BIS central bankers' speeches  expectations. The recent slowdown could also be a sign that supply-side constraints are becoming increasingly binding.