Reserve Bank Governor Alan Bollard, says there has never been the degree of financial turbulance being experienced around the world before.
Wall Street and other world markets tumbled after the US House of Representatives rejected a $US700 billion rescue package on Monday by 228-205.
Dr Bollard told Morning Report the Reserve Bank is keeping a close eye on the banking system in New Zealand.
He says the Reserve Bank is trying to judge the short-term effects of the crisis, and says it is not something that would necessarily affect the Official Cash Rate.
Dr Bollard says the Reserve Bank is in a holding pattern waiting for the US Congress to pass some sort of bailout package and restore confidence to the markets.
