WELLINGTON, Dec 1 (Reuters) - The head of New Zealand’s central bank said on Monday that inflation targeting remains the appropriate focus for monetary policy.
Graeme Wheeler said the policy, of which New Zealand was a pioneer, had delivered price stability without reducing long-term growth, and the Reserve Bank of New Zealand (RBNZ) was a flexible inflation targeter.
“We seek to anchor inflation expectations close to the price stability objective while retaining discretion to respond to inflation and output shocks in a flexible manner,” Wheeler said in a speech on inflation targeting to a banking conference.
The RBNZ adopted inflation targeting in 1990. It is required to keep consumer inflation, currently at 1 percent, between 1 and 3 percent on average over the medium-term.
The full speech is available at: here
Writing by Gyles Beckford; Editing by Kevin Liffey