In December 1993, on the occasion of the announcement of my appointment as Governor, the Bank and the Minister of Finance issued a joint statement on the objectives of monetary policy. In this statement, the newly elected government and the Bank recommitted themselves to price stability as the goal of monetary policy.
It was also agreed that the 1 to 3 per cent target range for inflation would be extended through 1998, and that a decision on the definition of price stability would be postponed. There were two reasons for this extension.