WELLINGTON, June 7 (Xinhua) -- A renewed Policy Targets Agreement (PTA), which sets out specific targets for maintaining price stability in New Zealand, was signed on Wednesday in order to ensure consistency of the monetary policy over the election period.
The PTA was signed by Finance Minister Steven Joyce and incoming Acting Reserve Bank Governor Grant Spencer, according to a government statement.
There is no change from the existing agreement which requires the Reserve Bank to keep future CPI inflation outcomes between 1 percent and 3 percent on average over the medium term, with a focus on keeping future average inflation near the 2-percent target midpoint, said the statement.
The renewed agreement takes effect on Sept. 27, after Reserve Bank Governor Graeme Wheeler completes his term on Sept. 26. It will apply from Sept. 27, 2017 till March 26, 2018, it said.
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," the statement said.