Fed: Stevens to replace Macfarlane as RBA governor = 3

AAP General News (Australia)
08-01-2006
Fed: Stevens to replace Macfarlane as RBA governor = 3

Mr Costello said the government's monetary policy was unlikely to change significantly
with Mr Stevens at the helm of the RBA.

"The way in which we've conducted monetary policy ... is according to an agreement
between the treasurer and the governor and Glenn and I will be entering into such an agreement
before he commences his term," he said.

"I can tell you the agreement will be substantively the same as the current agreement.

"Most importantly, it will have the same object as the current agreement of keeping
consumer price inflation between two and three per cent, on average, through the cycle."

Mr Costello said there would be times when inflation would go above or below the target band.

"But on average, over the cycle, it's the objective to ensure that it stays between
two and three per cent," he said.

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KEYWORD: RBA 3 CANBERRA

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