This is where non-standard measures come in. Non-standard measures are a variant of standard monetary policy that utilises different instruments, intermediate targets and communication devices to achieve the same final objective, namely maintaining price stability over the medium term.
This means assessing the extent to which wages, construction costs and other prices rise nationally, as resources are drawn into the Canterbury region. At the same time, monetary policy should also look to avoid any unnecessary instability in activity, the exchange rate and interest rates resulting from the earthquakes.