RBNZ and IMF join efforts on future of inflation targeting

RBNZ and IMF join efforts on the future of inflation targeting

23 August 2019

The Reserve Bank and the International Monetary Fund are hosting a conference in Wellington next week to discuss broad issues around monetary policy, the labour market, and the future of inflation targeting.

Inflation Targeting: Prospects and Challenges has attracted delegates from around the world. It will be co-hosted by the Bank and the IMF’s Regional Office for Asia and the Pacific, and will be held at Te Papa Tongarewa on August 28 and 29.

While inflation targeting has had a history of success in delivering low, stable inflation and substantial macroeconomic stability over the past several decades, the last 10 years have proven to be challenging for monetary authorities.

RBNZ Assistant Governor and General Manager of Economics, Financial Markets and Banking Christian Hawkesby says: “We are now faced with stubbornly low inflation and low interest rates, driven by structural and cyclical factors. If monetary policy is to be successful for a further 30 years, we need to confront these challenges.

“This is what this conference is about — understanding the big questions about inflation targeting and considering how we need to adapt to continue being as successful as possible.”

The conference will feature two keynote speeches:
* Professor Jinnil Kim of Korea University will talk about central bank mandates
* Dr. Mary C. Daly, President and Chief Executive Officer of the Federal Reserve Bank of San Francisco, will discuss using a dual mandate framework for monetary policymaking and the tradeoffs that must be considered in a changing economic environment.

The IMF’s Director of the Office for Asia and the Pacific, Chikahisa Sumi, says that the conference is a timely event.

“New Zealand pioneered inflation targeting three decades ago. Most recently, the RBNZ has again been among the pioneers in the central bank community when revisiting its monetary policy framework.

“Discussions about these frameworks currently happen not only in advanced economies but also in many emerging market countries. This conference is happening in the right place, at the right time, and with the right participants.

“We are delighted to work closely with the Reserve Bank of New Zealand in providing this opportunity for experts from both advanced and emerging economies to share and gain cutting-edge insights about the future of monetary policy making.”

The conference will also feature two policy-oriented panel discussions with senior central bankers from the Asia-Pacific region. The first will focus on the design and conduct of monetary policy and the second on central bank governance and independence.

In addition to RBNZ and IMF representatives, the event will bring together central bankers, thought leaders, academics, and policymakers from more than 20 countries.

More information:
* Inflation Targeting: Prospects and Challenges Conference Programme (https://www.rbnz.govt.nz/research-and-publications/seminars-and-workshops/inflation-targeting-prospects-and-challenges?utm_source=Reserve+Bank+of+New+Zealand&utm_campaign=0f30bd75a4-EMAIL_CAMPAIGN_2019_08_22_11_02_COPY_01&utm_medium=email&utm_term=0_c0c0e9bb78-0f30bd75a4-25504821)
* About the International Monetary Fund Regional Office for Asia and the Pacific (https://www.imf.org/external/oap/about.htm?utm_source=Reserve+Bank+of+New+Zealand&utm_campaign=0f30bd75a4-EMAIL_CAMPAIGN_2019_08_22_11_02_COPY_01&utm_medium=email&utm_term=0_c0c0e9bb78-0f30bd75a4-25504821)

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