In practical terms, some examples include:   Pursuing low and stable inflation and contributing to maximum sustainable employment, without creating undue volatility in output, interest rates and the exchange rate;    Maximising financial system soundness while supporting efficiency, competition, innovation, and inclusion;    Promoting certainty of cash availability while promoting technology innovation in payments and settlement systems;    Ensuring robust payment and settlement systems, while encouraging competition; and    Being the liquidity provider in extreme financial market events while minimising moral hazard in market behaviour and operating prudently with the Bank’s balance sheet.
These trade-offs have always existed in economic practice, but they have varied in their definitions, importance, and presence in the Reserve Bank’s legislation, and societies expectations. Our task is to build a consistent, coherent, and transparent approach to managing and explaining these objectives, trade-offs, and our risk appetite across all aspects of our work.