[OPINION] We are not alone with Monetary Policy: Orr

Adrian Orr

It was clear that even in the remote mountain region of the US state of Wyoming we were among the crowd.

The annual August Kansas Federal Reserve’s summit of many of the world’s central bankers vividly highlighted our commonality. Inflation has been low and stable, and many labour markets are near their peak loading. New Zealand included. Independent central banks have successfully achieved their inflation goals, promoting economic wellbeing.

Yet, there was no vigorous back patting. There were mostly furrowed brows.

A slowing global economic outlook, increasingly prompted by pockets of volatile politics, is keeping the world’s central bankers busy. In response to the economic chill, central banks around the world have lowered interest rates - often to record lows - to promote investment and spending. They continue to pursue their mandated low inflation goals.