Under the Reserve Bank of New Zealand Act 1989 (the Act), the MPC is responsible for formulating monetary policy to maintain a stable general level of prices over the medium term and to support maximum sustainable employment.2 Operational objectives for monetary policy are set out in the Remit. The current Remit sets out a flexible inflation targeting regime, under which the MPC must set policy to: • keep future annual inflation between 1 and 3 percent over the medium term, with a focus on keeping future inflation near the 2 percent mid-point; and • support maximum sustainable employment, considering a broad range of ... (full story)