In its White Paper, the  1  Callum McCarthy (FSA) says this about the idea of a “lead supervisor”: “Instead of this approach, we should recognise that regulation of pan-European groups requires collaboration among regulators. We must be more efficient in how we go with this.
It is important to understand, then, that the level of settlement cash does not create inflation or deflation; in fact, in New Zealand, we have experienced periods of large settlement cash growth before, without changes to the stance of monetary policy.6 Bringing all of this together, I want to finish the speech by sharing our expectations around the future trajectory of the settlement cash level and how our monetary policy implementation framework will allow this transition to occur smoothly.