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KIWI IGNORES PTA CHANGES, TRADES FLAT.
(From New Zealand Press Association)
Wellington, Sept 17 NZPA - The New Zealand dollar ignored a change in the Reserve Bank's inflation target this morning to trade largely unchanged on yesterday's close.
Finance Minister Michael Cullen and Reserve Bank governor-designate Alan Bollard today signed off on a revised inflation-fighting accord -- the Policy Targets Agreement (PTA) -- for Dr Bollard to follow during his five-year term.
The new PTA sees New Zealand's inflation target narrowed to 1 to 3 percent, from its previous 0-3 percent. Dr Bollard is also required to take a ``forward-looking, medium-term approach'' to achieving price stability.
Dr Bollard said the new agreement would allow monetary policy to be more flexible and help avoid unnecessary instability in interest rates and the exchange rate.
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