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New Zealand Sees No Case to Change RBNZ’s Inflation Targeting

  • Treasury signals no desire to ditch framework RBNZ pioneered
  • Policy Targets Agreement is reviewed ahead of 2017 renewal

New Zealand is likely to maintain an inflation-targeting framework for monetary policy when the government renews its Policy Targets Agreement with the central bank next year, the Treasury Department said.

“Our view is that no case has yet been made to change our current framework and there would be a high hurdle before going down that path,” Treasury spokesman Bryan McDaniel said in an e-mail Tuesday. Canada, Sweden and the U.K. have recently undertaken monetary framework policy reviews and none of those led to a move away from inflation targeting, McDaniel said. The comments were first reported by Radio New Zealand and interest.co.nz.