BIS central bankers’ speeches  7  The purpose or principle of monetary policy by the Bank is clearly stated in the Bank of Japan Act – namely, it is “achieving price stability, thereby contributing to the sound development of the national economy”.
This has helped to enhance the understanding of the public of what the Reserve Bank is aiming to achieve and thereby helped the effectiveness of monetary policy. The inflation target has made a material contribution to the very satisfactory macroeconomic outcomes that the Australian economy has enjoyed over the past 25 years. Inflation has been consistent with target.