Third, we also realize that the credibility of the banking system will be contingent on the ability of the banking industry to strengthen good corporate governance, including management of operational risk. Fourth, moreover, we inderstand that the implementation of deposit insurance scheme requires banks to strengthen market confidence.
In operating monetary policy, we will continue to carefully monitor people’s perceptions of the inflation outlook, to confirm that their confidence in price stability remains strong. What then of New Zealand’s current economic situation? As you know, the New Zealand economy has been going through a strong period, stimulated by international conditions favourable for us.