In order to achieve the price stability target, it is important – with this mechanism functioning effectively – to maintain the virtuous cycle in which prices rise moderately along with a balanced and sustainable improvement in economic activity that is accompanied by increases in corporate profits, employment, and wages. 2.
This brings us to the important issue of corporate governance, which has gained increased attention all around the world, including Papua New Guinea. Although the Companies Act does not specifically emphasize corporate governance, the Bank expects all the financial institutions that it supervises to adopt and implement good corporate governance practices.