Oxford Conference on ‘The Financial System(s) of Tomorrow’, Saïd Business School, University of Oxford, United Kingdom. 8  New Zealand’s Monetary Policy Implementation Framework  UNCLASSIFIED  Ref #X750533 v3.4  To anchor short-term interest rates, we will need to ensure that settlement cash does not become scarce.
This means that the level in the future will be above the minimum amount of settlement cash needed for payment and settlement needs. If settlement cash becomes scarce, we may see upward pressure on short-term interest rates. As well as monitoring short-term interest rates, usage of our facilities and uptake of our operations can provide useful information.