These issues and the requirements in the PTA in respect of asset prices, financial stability and efficiency and volatility in output, interest rates and the exchange rate, mean that there is much to consider in determining monetary policy that extends well beyond the current level of headline inflation.
If concerns deepen around the prospects for the global economy and its BIS central bankers’ speeches  9  impact on New Zealand, some further policy easing may be needed over the coming year to ensure future average inflation settles near the middle of the target range. We will continue to monitor closely the emerging economic and financial data.