Articles tagged Policy Targets Agreement

After almost 30 years the Reserve Bank of New Zealand has abandoned its pioneering approach of focusing solely on inflation. It will now aim to both keep inflation low and maximise employment, although it's not clear yet whether it's more than just window-dressing. Thomas Coughlan reports.

Updated

Reserve Bank Governor-designate Adrian Orr and Finance Minister Grant Robertson said there would be no change to the Bank’s two percent mid-point target for inflation when they signed the Reserve Bank’s new Policy Targets Agreement at the Beehive on Monday, but they did include a new aim of supporting maximum levels of sustainable employment.

For the convenience of subscribers, here's my weekend column in which I argue those saying the Reserve Bank should just give up on reaching its 2% inflation target need to remember the people who won't get jobs and the exporters who will be sacrificed if the OCR is kept higher than is needed to hit that target.