Hon Bill English Minister of Finance

19 December 2008

Amended Policy Targets Agreement Signed

A new Policy Targets Agreement signed by Finance Minister Bill English and Reserve Bank Governor Alan Bollard has been released today. The only change to the Policy Targets Agreement is a statement of the government's economic objectives, as a backdrop for the operation of monetary policy.

The statement is as follows: "The government's economic objective is to promote a growing, open and competitive economy as the best means of delivering permanently higher incomes and living standards for New Zealanders. Price stability plays an important part in supporting this objective".

The Finance Minister and Reserve Bank Governor agree that the monetary policy framework and the main features of the Policy Targets Agreement continue to provide the best basis for monetary policy to contribute to the economy returning to a sustainable, stronger growth path over time, notwithstanding the current very difficult international environment.

The Policy Targets Agreement is available on the Reserve Bank of New Zealand website: http://www.rbnz.govt.nz/monpol/pta/index.html.

ENDS

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