This has meant an ongoing reliance on foreign saving via inward capital flows, placing upward pressure on interest rates and the exchange rate. 2  BIS central bankers’ speeches  Our current high exchange rate also reflects the relative strength of New Zealand’s economic performance and the consequent upward pressure on our interest rates relative to those in other advanced economies.
This runs counter to our mission. There are ways we can impact investment decisions and credit allocation. Our supervisory policies could, for instance, take into account the transition to a low carbon economy. That’s why we as a central bank can help transform the financial infrastructure, so it facilitates the necessary flow of capital to where it is needed most.