Indeed, it is this obligation to be transparent about the objectives of policy, and about the modus operandi of policy, that is one of the most important aspects of the New Zealand inflation targeting framework, arguably as important as instrument independence itself.
If a Minister were, say, to instruct the Bank to ignore the inflation rate and focus instead on increasing the growth rate - as he could do by invoking the override provision - markets would almost certainly deliver an immediate increase in interest rates across almost the entire yield curve (the Bank would still, of course, be able to anchor the overnight rate), together with a sharp fall in the exchange rate.