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What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR be...

What should the RBNZ do to avoid any risk of increasing inflation? Should the OCR be decreased by more or less than the change implied by the average of model predictions?

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To decrease the Risk of inflation RBNZ has to increase statutory Liquid ratio ,Open market operations By federal bank, Cash reserve ratio ,bank rate are some of the way by which the availability of cash for creating credit with the bank is less and consequently economy will have less availability of cash and bank rate will cause the money to get at costlier price on credit than the earliar . which will solve the issue of inflation and decrease it .

OCR (official cash rate ) Should be less decreased by change implied by model of prediction.

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