By Paul McBeth
Friday 19th December 2008 |
Text too small? |
A new clause has been added to the PTA stating that "The government's economic objective is to promote a growing, open and competitive economy as the best means of delivering permanently higher incomes and living standards for New Zealanders. Price stability plays an important part in supporting this objective".
Under the PTA, the central bank is required to keep annual inflation between 1% and 3% on average, over the medium term. Inflation accelerated to more than 5% in the third quarter and is expected to dissipate rapidly as demand falters in a shrinking economy.
English and Bollard reiterated their support for the PTA as the best way to help the economy return to "a sustainable, stronger growth path over time, notwithstanding the current very difficult international environment, according to the statement.
"There will be no change to the way policy is implemented," said Michael Gordon, markets economist at Westpac Banking Corp. "I'd be surprised if there's any real change."
Bollard this month slashed the official cash rate by 150 basis points to 5% to revive the economy, amid signs of a prolonged worldwide economic slump.
No comments yet
Rakon FY2024 Results Announcement Date
WHS - The Warehouse Group FY24 Third Quarter Sales Update
May 10th Morning Report
FY24 Results Announcement Date and Briefing Details
Fonterra appoints permanent CFO
Harapaki wind farm now on track for mid-winter completion
Rabobank picks $8.40 kg/MS forecast milk price for 24/25 dairy season, but warns global dairy price recovery now likely to be slower
Kiwi Property FY24 annual results announcement date
MFB - FY24 Results Announcement Date and Briefing Details
AIA - Announces books closed for retail bond offer