BIS Review 63/2007  11  Monetary policy implications It bears repeating that we cannot be sure about the path of dairy prices over the next few years following their recent run-up. Assuming dairy prices do remain at elevated levels there are likely to be many benefits for New Zealand, including higher growth and a reduced trade deficit.
C.  Future conduct of monetary policy  1. Policy change and market stability  As explained so far, I have been proposing at MPMs a change to the guidelines for money market operations and asset purchases, including a reduction in the annual pace of increase in the amount outstanding of the Bank's JGB holdings.