told that the first step to running a marathon is to tell everyone of your intentions. commit. you have just been told of our intentions to work collectively – locally, regionally, and globally – in pursuit of maximising our mandate. we desire to be a great team and the world ’ s best central bank. the resounding results that past and present people at the reserve bank have achieved provides a fantastic platform to progress this work. me mahi tahi tatou mo te oranga o te katoa. work together for the wellbeing of everyone meitaki thank you national review ) on the national implementation of the sdgs. several sdg targets can be mapped to the core functions of central banks, for instance : inclusive access to banking, insurance and financial services ( target 8. 10 ), regulation and monitoring of global financial markets ( 10. 5 ), reducing transaction costs of migrant remittances ( target 10. c ), reducing illicit financial flows ( 16. 4 ), enhancing macroeconomic stability ( 17. 13 ) and providing data capacity - building support to developing countries ( 17. 18 ) ( https : / / unstats. un. org / sdgs / indicators / indicators - list / ) 34 reserve bank climate change strategy, https : / / www. rbnz. govt. nz / financial - stability / climatechange / strategy 35 reserve bank of new zealand act ( 1989 ). page 11 of 11

especially in the face of persistent shocks. our ongoing analysis of household responses to high inflation and income variability ( lydon ( 2022 ), arrigoni et al. ( 2022 ), adhikari ( 2022 ) ) as well as to interest rate rises ( lyons et al ( 2022, fsr 1, box c ) ) will continue to highlight groups that are most vulnerable, allowing for appropriately target measures to be implemented. next, i want to move onto price stability and monetary policy, and how this interacts with inequality. price stability, monetary policy and inequality though central banks actions can have an impact on the distribution of wealth and income over shorter horizons, over the longer run their impact is likely to be small. as a tool that is primarily aimed at tackling cyclical fluctuations, monetary policy is unlikely to be a substantial driver of structural inequality. we know that downturns can lay bare the different types of inequality that are lurking beneath – as i mentioned above – but, the sources of inequality run deeper and, i believe, are more structural in nature than they are cyclical. but this does not mean that, as monetary policy makers, we should ignore it. this was one of the key messages we heard from the general public and representative groups when we conducted our own ‘ listening exercises ’ as part of the ecb ’ s 2021 strategy review. to the extent that monetary policy has significant redistributive effects, it will of course impact inequality, at least in the short term. but an equally – if not more – important issue is how inequality can also impact monetary policy. in other words, how pre - existing levels of inequality – either in income and / or wealth – impact how monetary policy is transmitted to households, firms and overall economic activity. there has been an explosion of research on this issue in recent years. 10 much of it focuses on the how monetary policy changes – for example, increasing or decreasing interest rates, or purchasing assets – affects different types of households according to income, job - type or wealth. when i talk about ‘ conventional ’ monetary policy, if there are more households in society whose consumption is very sensitive to income changes – typically those with limited access to credit, or fewer savings – then the transmission of monetary policy to the real economy tends to be stronger. our recent central bank quarterly bulletin article on “ household economic resilience ”, emphasised this issue by quantifying for the first time the joint distribution