In the area of central bank cooperation, regional forums such as EMEAP and SEACEN are enhancing the active exchange of views and the sharing of knowledge among members. The movement of people across borders is becoming much more active as regional integration deepens.
The Reserve Bank best ensures that that happens, however, by leaning against any attempts by those of us in non-tradable sectors to resist the fall in our real income that that depreciation inevitably means - or in other words, by leaning against any “second-round” inflationary pressures resulting from the depreciation. Will the New Zealand dollar continue to fall from here?