Amended Policy Targets Agreement Signed

A new Policy Targets Agreement signed by Finance Minister Bill English
and Reserve Bank Governor Alan Bollard has been released today.

The only change to the Policy Targets Agreement is a statement of the
government's economic objectives, as a backdrop for the operation of
monetary policy. The statement is as follows: "The government's economic
objective is to promote a growing, open and competitive economy as the
best means of delivering permanently higher incomes and living standards
for New Zealanders. Price stability plays an important part in
supporting this objective".

The Finance Minister and Reserve Bank Governor agree that the monetary
policy framework and the main features of the Policy Targets Agreement
continue to provide the best basis for monetary policy to contribute to
the economy returning to a sustainable, stronger growth path over time,
notwithstanding the current very difficult international environment.

The Policy Targets Agreement is available on the Reserve Bank of New
Zealand website: www.rbnz.govt.nz.