The Bank is required to maintain price stability whilst avoiding unnecessary instability in interest rates, exchange rates and output; and  •  Our financial stability role. The Bank is obliged to make sure the financial system remains resilient in the face of imbalances (such as a large current account deficit and growing debt levels) and subsequent adjustments that might occur.
We will say more about our financial stability role when we release our next Financial Stability Report in November. While we believe the New Zealand financial system is well placed to weather strains that may be borne by its customers, we will be monitoring the risks closely as we go forward.