Government as a whole, as well as these two SOEs, need to consider ways of front-loading some of these purchases to take advantage of the strength of the currency, and thereby considerably reduce the cost of the build/capital programme. Implications for monetary policy What are the implications for domestic monetary policy? Monetary policy is conducted within a flexible inflation targeting framework.
By this we mean that although the primary objective of monetary policy is to keep inflation within the target range of 3–6 per cent, this is done with due regard to the impact of our policies on growth, employment and financial stability.