That is how an inflation target works, and it would do so even if the Reserve Bank's legislated mandate was expressed solely in terms of price stability. But the mandate in our Act also encompasses full employment and the welfare of the Australian people. These things are not in conflict with an inflation target. Rather, they inform how that inflation-targeting regime operates day-to-day.
They are relevant to the choices made about how quickly to return to target. The role of an inflation-targeting regime for monetary policy in supporting growth can be well illustrated by events in the Australian economy over the past decade or so.