Looking ahead, there remains much for us to learn about New Zealand’s unique labour market, and how we can best support and meet our employment objective. Likewise, there is much to learn about operating monetary policy in the current, unprecedented, low interest rate environment.
We are in a relatively favourable position at present, given our current positive inflation and employment outcomes, and with the OCR at 1 percent, above many of our OECD central bank colleagues. But we need to be prepared for the unanticipated. In partnership with the Treasury, we continue to assess how we can effectively and efficiently operate monetary policy should interest rates reach zero.