Monetary policy in New Zealand will inevitably be influenced by, and have to react to, developments abroad. •  Even if the inflation target framework has had a fairly modest influence on the public’s inflationary expectations, it has certainly exerted a very direct impact on the Reserve Bank’s approach to its monetary policy task.
The target is at the front of our minds with each policy decision. I have no doubt that the framework has influenced the behaviour of the Bank’s Monetary Policy Committee and the choices made by the Governor at key points. CONCLUDING COMMENTS I have described the origins of our inflation targeting regime and its evolution over the past decade.