Reserve Bank of New Zealand (RBNZ) Chief Economist Paul Conway said on Wednesday that the central bank does not expect to use additional monetary policy (AMP) tools again anytime soon, adding that it is unrealistic to expect monetary or fiscal policies to offset every economic shock. “Looking ahead, we will continue improving our understanding of how AMP tools influence the economy and strengthen institutional arrangements to coordinate with our fiscal counterparts,” Conway said in a speech in Sydney, as reported by Reuters. Last week, the RBNZ surprised markets by lowering its official cash rate by 50 basis points to 2.5%, bringing borrowing costs to their lowest level since mid-2022. Inflation remains near the top of the central bank’s 1–3% target band but is expected to return to the 2% midpoint by mid-2026 as tradables inflation pressures ease. September data showed New Zealand’s GDP contracted by 0.9% quarter-on-quarter in Q2 2025 and shrank by 0.6% year-on-year.