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RAMPed up: RBNZ's Additional Monetary Policy toolkit

Brandon Kengmana

The Reserve Bank of New Zealand – Te Pūtea Mātua responded decisively to the arrival of COVID-19 in New Zealand and its associated economic headwinds. Given the low interest rate environment coming into 2020 and the operational constraints associated with cutting the OCR into negative territory, we rapidly developed and introduced additional monetary policy (AMP) tools.

This article summarises our current thinking and understanding of each of these tools, building on the analysis expressed in our 2018 Bulletin on AMP. It demonstrates how we applied our principles when considering the use of these tools.

With continued uncertainty ahead, the Reserve Bank keeps the range of AMP tools under consideration. They remain essential for us to achieve our purpose – Toitū te Ōhanga, Toitū te Oranga – to enable the economic wellbeing and prosperity of all New Zealanders.