RBNZ adds employment to inflation goals - Reuters

The incoming Reserve Bank of New Zealand (RBNZ) governor Adrian Orr signed a new policy deal with the government to include the goal of "maximizing sustainable employment". Meanwhile, the central bank has maintained the original mandate's 1-3 percent inflation goal. 

In a news conference following the signing of the agreement, Orr steered clear of suggestions he would be soft on inflation.

(Source: Reuters)

"In general times it should not make too large a difference because we're always considering short-term volatility in employment and output when thinking about interest rate decisions"

"But there can be times, for "instance an economic shock or an extreme business cycle, where you have to really trade off short-term inflation versus employment"

"Vice-versa, during economic shocks, negative shocks, monetary policy had shown an enormous ability to stabilize economies globally, for example, through the GFC"