About the Bulletin
This Bulletin provides an account of the research, modelling, policy development, and operational improvements that the Reserve Bank has made in response to the 2022 Review and Assessment of the Formulation and Implementation of Monetary Policy (RAFIMP).
Objectives
- Accountability — provide a public account of how we responded to each of the RAFIMP’s 9 recommendations.
- Promote transparency and understanding — help New Zealanders better understand how monetary policy decisions are made and how the framework is being strengthened for future shocks.
- Explain outcomes — for each recommendation, explain why it matters, the identified gaps, what has been done (research, models, tools, governance), and what remains.
Non-technical summary
We have responded to the RAFIMP with a comprehensive and sustained work programme. Our work has ranged from investing in more timely and granular data sources, to improving how we measure the neutral interest rate, and building models that help distinguish between supply- and demand-driven inflation.
We have also deepened coordination with the New Zealand Treasury to better understand interactions between fiscal and monetary policy, assessed the impact of large scale asset purchases, and ensured that we remain operationally ready to deploy additional monetary policy tools when required.