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    New Zealand Reserve Bank to consider employment alongside price stability
    Source: Xinhua   2018-03-26 17:21:56

    WELLINGTON, March 26 (Xinhua) -- A new Policy Targets Agreement (PTA) was signed on Monday to set out specific targets for maintaining price stability and a requirement for employment outcomes to be considered in the conduct of monetary policy.

    The PTA, signed by Finance Minister Grant Robertson and incoming Reserve Bank Governor Adrian Orr, takes effect on Tuesday, when Orr starts his five-year term as governor.

    The new PTA has to be signed under the existing provisions of the Reserve Bank Act 1989, which has price stability as the Reserve Bank's primary objective.

    The agreement continues the requirement for the Reserve Bank to keep future annual CPI inflation between 1 and 3 percent over the medium-term, with a focus on keeping future inflation near the 2 percent mid-point.

    The new PTA now also requires monetary policy to be conducted so that it contributes to supporting maximum levels of sustainable employment within the economy.

    "The Reserve Bank Act is nearly 30 years old. While the single focus on price stability has generally served New Zealand well, there have been significant changes to the New Zealand economy and to monetary policy practices since it was enacted," Robertson said.

    Editor: ZD
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    Xinhuanet

    New Zealand Reserve Bank to consider employment alongside price stability

    Source: Xinhua 2018-03-26 17:21:56
    [Editor: huaxia]

    WELLINGTON, March 26 (Xinhua) -- A new Policy Targets Agreement (PTA) was signed on Monday to set out specific targets for maintaining price stability and a requirement for employment outcomes to be considered in the conduct of monetary policy.

    The PTA, signed by Finance Minister Grant Robertson and incoming Reserve Bank Governor Adrian Orr, takes effect on Tuesday, when Orr starts his five-year term as governor.

    The new PTA has to be signed under the existing provisions of the Reserve Bank Act 1989, which has price stability as the Reserve Bank's primary objective.

    The agreement continues the requirement for the Reserve Bank to keep future annual CPI inflation between 1 and 3 percent over the medium-term, with a focus on keeping future inflation near the 2 percent mid-point.

    The new PTA now also requires monetary policy to be conducted so that it contributes to supporting maximum levels of sustainable employment within the economy.

    "The Reserve Bank Act is nearly 30 years old. While the single focus on price stability has generally served New Zealand well, there have been significant changes to the New Zealand economy and to monetary policy practices since it was enacted," Robertson said.

    [Editor: huaxia]
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