Our actions display the Monetary Policy Committee's determination and confidence in returning annual inflation to within our 1% to 3% target range. Our focus on low and stable inflation is the best contribution we can make to the overall wellbeing of New Zealanders. In a relative sense, New Zealand is in a strong macroeconomic position relative to most OECD nations.
Fourth, to reduce rigidity on liabilities side, banks be encouraged to accept deposits, especially bulk deposits, at floating rates linked directly to the selected external benchmark.