d, 2002). As part of maintaining price stability, the Reserve Bank is required to set the official cash rate. By setting this rate, the bank has a strong influence over such things as the 90-day bank bill rates, home mortgages, and so on. This leads to the bank having an overall influence on the economic situation, and thus, the inflation rate for New Zealand, keeping people in jobs, and money in pockets (The Reserve Bank of New Zealand, 2002)....
