New Zealand / Economy

Govt and RBNZ sign unchanged PTA target

13:02 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 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.