At present, rising construction costs are not a major concern for monetary policy. Construction costs in Christchurch are up 12 percent over the past year and they have recently been rising in Auckland.
Following the demise of money supply targeting during the mid 1980s, both Canada and Australia went through a transitional period which lasted until the early 1990s. During this transitional period a policy of “monetary pragmatism” was followed. There was indeed no formal or strictly defined framework to guide monetary policy.