Over the past 25 years, there have not really been material changes in the specification of the inflation target in Australia. The extent and content of the communication has increased, in line with the general trend across all central banks.
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.