There have been two changes made in the new PTA, but I suspect that to the general public the only difference between the new Agreement and all of the earlier ones is that the new Agreement has changed the ‘definition’ of price stability from 0 to 2 percent to 0 to 3 percent, while making it clear that delivering that price stability remains the single objective of monetary policy and constitutes the best way in which the Reserve Bank can contribute to New Zealand’s economic development.
Some will ask in anger why the inflation target is still so low, and why the Bank will continue to focus monetary policy on delivering that target, when there are other objectives - such as economic growth, employment, and export competitiveness - which are at least as important and in many respects more so.