Altogether, even in a rising interest rate environment, debt-service ratios at least for a while should rise only modestly. *** In summary, although some broader macroeconomic measures of household debt quality do not paint as favorable a picture as do the data on loan delinquencies at commercial banks and thrifts, household finances appears to be in reasonably good shape.
Witness our new dual mandate for inflation targeting and contributing to maximising sustainable employment; the production and movement of our money (our sap) is under review, with new storage and distribution models, and the role of digital currency, being considered; our payment and settlement systems and digital capability (our trunk) are being renewed, with a view to ongoing reliability, security from cyber-risks, and a move to the ‘cloud’; our regulated financial institutions (the branches grafted on to Tāne Mahuta) are under review, including our relationship management with them, and our expectations of their business conduct, capital needs, failure management capabilities, and efficiency metrics; and our people (the caretakers or kaitiaki) are being reinvigorated, with a focus on developing A Great Team, Best Central Bank vision.