Sharechat Logo

RBNZ Policy Targets Agreement amended with government objectives

Friday 19th December 2008

Text too small?
The Reserve of New Zealand must now be mindful of government policy objectives when it sets monetary policy, according to an amended Policy Targets Agreement signed by Governor Alan Bollard and Finance Minister Bill English.

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.

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.

By Jonathan Underhill



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

FreshLeaf: Cannabis on course to be 'medicine of the masses'
Arvida Group Limited (NZX: ARV) to Acquire Arena Living Retirement Living Portfolio
My Food Bag Group Limited (NZX: MFB) Market Update and HY Results Announcement Date
Harmoney Corp Limited (NZX: HMY) Delivers Record September Quarter
Vital Healthcare Property Trust (NZX: VHP) Announces Successful Completion of $115m Placement
14th October 2021 Morning Report
General Capital Limited (NZX: GEN) Completes Greenfern Listing
LISTING AND QUOTATION NOTICE: NZX MAIN BOARD - GREENFERN INDUSTRIES LIMITED
13th October 2021 Morning Report
Hotel Montreal: Patterson Family Buys Christchurch's Hotel Montreal