subsequent rise in international food and energy prices would still have led to headline consumer price index inflation exceeding 6 % now. in an absolute sense, actual and expected inflation is too high and needs to be reduced. subsequent monetary policy committee decisions have seen the ocr rise from 0. 25 % in august 2021 to the current rate of 4. 25 %. our actions display the monetary policy committee's determination and confidence in returning annual inflation to within our 1 % to 3 % target range. our focus on low and stable inflation is the best contribution we can make to the overall wellbeing of new zealanders. in a relative sense, new zealand is in a strong macroeconomic position relative to most oecd nations. we are around the lowest quartile for both inflation and unemployment relative to other oecd nations. we have a stable and well - functioning financial system that is resilient to a wide range of interest rate and employment shocks. and, as outlined in our most recent monetary policy statement, we have resilient household, public, and business sector balance sheets in aggregate. new zealand has a near record low unemployment rate of 3. 3 % and exceptionally high labour force participation rates. households have accumulated financial savings, with average household incomes rising in line with inflation. nominal wage rates have risen, with incomes further bolstered as people moved jobs to earn more, worked longer hours, or gained promotions. average hourly earnings growth for the private sector was 8. 6 % 1 in the year to september 2022, compared with consumer price index inflation of 7. 2 % in the same period. as interest rates rise, we expect spending to slow and unemployment levels to increase as more people join the workforce over the coming year. even with the expected slowdown in the period ahead, it is anticipated that the level of employment will remain high. large scale asset programme 2 / 7 bis - central bankers'speeches i'd like to briefly comment on the large scale asset purchase and funding for lending programmes which featured during the 2021 / 22 financial year. the review and assessment of monetary policy over the past five years showed that the large scale asset programme was highly effective in response to the liquidity crisis that emerged in early 2020 and in lowering longer - term interest rates. the funding for lending programme also gave banks confidence that a stable and secure funding source was available during a period of heightened financial market uncertainty. banks were able to continue their business of financial intermediation, avoiding a credit

and cash in line with this broader perspective and enabled by updates to our legislation, we have refreshed our approach to the money and cash system, and have been seeking feedback through public consultation. we have concluded that the concept of stewardship'or'kaitiakitanga'best describes our responsibilities for money and cash. the reserve bank's proposed objectives for stewardship are to ensure that, now and in the future : 1. central bank money is a trusted and stable value anchor for the money and cash system. 2. central bank money is available as a fair and equal way to pay and save. we are taking a forward - looking, system - wide approach to advancing these objectives, including monitoring, reviewing, reporting on, analysing and supporting change to the money and cash system. what this means in practice is that we will, first, develop a strategic view of the role central bank money plays in the financial system and beyond, considering how wider initiatives impact central bank money and the key objectives i ’ ve just set out. this is so that we do not lose sight of our statutory economic and financial stability objectives. it also means we are conscious of the interconnections and flow - on consequences of changes to new zealanders'well - being. secondly, we want to take a coordinated and strategic approach to working with other agencies and stakeholders to promote the best possible outcomes across the systems. for instance, we are taking a close interest in work being led by the ministry of business, innovation and employment on a consumer data rights regulatory regime. 8 similarly, we are interested in work being led by the department of internal affairs on a digital identity trust framework. we see an important role for government, through initiatives like these to support financial innovation that benefits new zealanders. 9 we are also conscious of the role we play in achieving other policy objectives outside a narrow central banking lens. we are thinking carefully, for example about how to mitigate new risks that digital innovation can create in terms of anti - money laundering and counter terrorism funding, as well as better managing existing risks related to cash. thirdly, stewardship will be inclusive and respect te tiriti o waitangi. this means that we will take care to consider the trade - offs between different groups, including intergenerational ones, and _ _ _ _ _ _ _ _ _ _ _ _ for the bank ’ s work to instil a te ao maori perspective, see te ao maori :