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The current objective is a policy of inflation targeting aimed at maintaining the annual inflation rate at between "2–3 per cent, on average, over the cycle". This target was first set in 1993 by the then Reserve Bank Governor Bernie Fraser and was then formalised in 1996 by the then Treasurer Peter Costello and incoming Reserve Bank Governor ...
The RBA made its move this morning to support employment and inflation. There is also a willingness to deliver more if required…
In New Zealand, the official cash rate (OCR) is set by the Reserve Bank of New Zealand to meet the inflation target specified in the Policy Targets Agreement. The current agreement, signed in December 2008, defines price stability as annual increases in the Consumers Price Index (CPI) of between 1 and 3% on average over the medium term.
Early proposals of monetary systems targeting the price level or the inflation rate, rather than the exchange rate, followed the general crisis of the gold standard after World War I. Irving Fisher proposed a "compensated dollar" system in which the gold content in paper money would vary with the price of goods in terms of gold, so that the price level in terms of paper money would stay fixed.
Fresh inflation data released Wednesday is likely to keep the Federal Reserve on pause during its next policy meeting this month, even though a new reading did show some signs of easing.. On a ...
The Bank of England, meanwhile, held off on cutting rates last month even though UK inflation slowed to the central bank’s 2% target in May. However, services inflation came in higher than expected.
The most influential reaction function is the Taylor rule, developed by economist John Taylor in 1993.The rule provides a systematic formula for setting the nominal interest rate based on four key variables: The deviation of current inflation rate from the central bank's target; The current inflation rate itself; The equilibrium real interest rate; and the output gap, measured as the ...
Federal Chair Jerome Powell said that a new inflation report released Friday is 'along the lines of what we want to see,' sticking to an assertion that inflation is still on a 'bumpy path' down to 2%.