7 Jun 2017

Govt and RBNZ sign unchanged PTA target

1:02 pm on 7 June 2017

Finance Minister Steven Joyce and incoming acting Reserve Bank governor Grant Spencer have signed an unchanged policy targets agreement (PTA).

The Reserve Bank of New Zealand

The government and the Reserve Bank have signed a new policy targets agreement. Photo: RNZ / Alexander Robertson

The new PTA will kick in once the current governor Graeme Wheeler finishes his term on 26 September.

The agreement lasts until 26 March, when a permanent Governor will be appointed.

The PTA sets out specific targets for maintaining price stability.

The agreement requires the Reserve Bank to keep inflation between 1 to 3 percent on average over the medium term, targeting the mid point of 2 percent.

"The renewed PTA will provide continuity, consistency and stability for the monetary policy target over the election period and during the period of appointment of a new Governor," Mr Joyce said.

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