Applying those principles to the central bank, we can see how the inflation targeting framework falls out fairly naturally. In the case of the Reserve Bank of New Zealand: •  The objective is clear - we must deliver inflation outcomes of between 0 and 3%.
Business and consumer sentiment have lifted in many countries and global trade and industrial production have picked up as well. Commodity prices are also higher than they were for most of last year. Headline inflation rates have returned to near normal levels in many countries, boosted by higher oil prices. And the point of maximum global monetary stimulus looks to have passed.