To ensure that inflation-targeting could establish credibility and take hold, four highly-related aspects of the framework were provided as stakes in the ground to support the new sapling. 7 These stakes were: operational independence; transparency; the single objective of price stability; and the Governor as sole decision maker, which I will now discuss in turn.
(i) Operational independence (RBNZ Act Section 13) Firstly, operational independence. The Reserve Bank Act (1989) provided the Bank with its operational independence and its monetary policy objective.