New Zealand central bank stimulus stayed too long after pandemic, review finds

An independent review of the Reserve Bank of New Zealand's response to the COVID-19 pandemic found that while the initial monetary policy stimulus was appropriate and effective, it remained in place too long. The review was commissioned by the current New Zealand government and comes after inflation peaked at 7.3% in late 2022, prompting rate hikes. It praised the initial rapid and innovative response but noted the Monetary Policy Committee was too slow to remove stimulus. Recommendations include a more systematic strategy, greater focus on real interest rates and near-term inflation, use of