The Reserve Bank and the International.........>

RBNZ: The Reserve Bank and the International Monetary Fund are hosting a

conference in Wellington next week to discuss broad issues around monetary

policy, the labour market, and the future of inflation targeting.

- Inflation Targeting: Prospects and Challenges has attracted delegates from

around the world. It will be co-hosted by the Bank and the IMF's Regional Office

for Asia and the Pacific, and will be held at Te Papa Tongarewa on August 28 and

29.

- While inflation targeting has had a history of success in delivering low,

stable inflation and substantial macroeconomic stability over the past several

decades, the last 10 years have proven to be challenging for monetary

authorities.

- RBNZ Assistant Governor and General Manager of Economics, Financial Markets

and Banking Christian Hawkesby says: "We are now faced with stubbornly low

inflation and low interest rates, driven by structural and cyclical factors. If

monetary policy is to be successful for a further 30 years, we need to confront

these challenges.