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Education

Explainers

Learn about monetary policy, the New Zealand financial system, the economy and other topics with these simple graphics and videos.

Published date:

The financial system and financial stability

Loan-to-value restrictions explained

Restrictions on loan-to-value ratios (LVRs) are limits on banks to reduce the amount of low-deposit mortgage lending. Prudent lending standards are important for the long-term health of the banking system and the economy.

The Financial Stability Report explained

Our Financial Stability Report reports on the soundness and efficiency of New Zealand's financial system.

The financial system explained

New Zealand has a sophisticated financial system involving many layers and players. We regulate the institutions depicted directly under the magnifying glass in this financial system graphic.

Monetary policy and the economy

The Monetary Policy Statement explained

Our Monetary Policy Statement provides a quarterly picture of New Zealand's economy, how it is performing and where we think the economy is heading next. It is a snapshot in time, as the economy never stops moving.

Economic projections explained

Each quarterly Monetary Policy Statement, we release includes our projections (or forecasts) for the future. These forecasts paint a picture of where our economists think New Zealand's economy, labour market, inflation and interest rates are heading over the next few years.

Our economic model explained

Our economic model illustrates how our economy works and provides a framework for our economists to think about what is happening within the economy. It shows the total amount of goods and services produced in our economy — our Gross Domestic Product.

The official cash rate explained

The official cash rate (OCR) is the interest rate set by the Monetary Policy Committee (MPC). It affects the price of borrowing and saving money in New Zealand and influences the level of economic activity and inflation.