Policy Targets Agreement  While the Policy Targets Agreement (PTA) for monetary policy is a relatively simple document, we continue to be surprised at the wide range of interpretations that we see in the media and in commentaries.
I would like to take this opportunity to discuss: what the PTA says; the thinking behind the changes introduced in 2012; and how the Reserve Bank interprets the PTA – particularly in relation to recent data on inflation outcomes, and in relation to monetary policy going forward.