Supplementary Stabilisation Instruments Information Release

In April 2006 the Reserve Bank and the Treasury released a joint report on possible additional instruments to supplement the role of interest rates in managing demand pressures and inflation.

This report, prepared under terms of reference issued in November 2005, was prompted by the recent strength and persistence of domestic household demand, the scale of the accompanying external imbalances, and the key role played by the house price cycle.

Note: On 23 February 2007 the Treasury and Reserve Bank of New Zealand released a report - Mortgage Interest Levy: A Detailed Option - that further developed this option that had been canvassed in the Supplementary Stabilisation Instruments: Initial Report below (pages 35-39).

These documents have also been released on the Reserve Bank of New Zealand web site - see About Monetary Policy - Supplementary Stabilisation Instruments (SSI).

The Reserve Bank web site has the following related material that is not reproduced here:

• Terms of Reference for the Supplementary Stabilisation Instrument Project (November 2005);
• Media statement: Report on supplementary tools released (6 April 2006).

Documents

Related Information on the Treasury Web Site

• Media Statement: Reserve Bank and the Treasury release book (16 October 2006) - The Reserve Bank and the Treasury have published a book titled 'Testing stabilisation policy limits in a small open economy'.
• Testing Stabilisation Policy in a Small Open Economy: Proceedings from a Macroeconomic Policy Forum (October 2006)

Related Links

• About Monetary Policy - Reserve Bank of New Zealand