Australia Treasurer reaffirms RBA inflation target

Published 19/09/2016, 11:22 am
© Reuters.  Australia Treasurer reaffirms RBA inflation target

SYDNEY, Sept 19 (Reuters) - Australian Treasurer Scott Morrison on Monday reaffirmed the government's memorandum of understanding with the Reserve Bank of Australia (RBA) that enshrines its central goal of keeping inflation in a 2 to 3 percent band over time.

In a news conference, Morrison said he had agreed with new RBA Governor Philip Lowe that no major changes were needed to the agreement.

There have been some calls for the inflation target to be changed, either lowered or raised, or for the central bank to target nominal economic growth instead.

The agreement calls for RBA policy to ensure a stable currency, maintain full employment and contribute to the economic prosperity and welfare of the people of Australia.

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