Search: inflation target
RBA Glossary definition for inflation target
inflation target – A tool to guide monetary policy expressed as a preferred range or figure for the rate of increase in prices over a period. In Australia, the inflation target is between 2 and 3 per cent per annum on average over the course of the business cycle.
RBA Glossary definition for inflation
inflation – A measure of the change (increase) in the general level of prices.
Search Results
MARTIN Has Its Place: A Macroeconometric Model of the Australian Economy
1 Aug 2019
RDP
2019-07
The central bank sets the cash rate according to a monetary policy reaction function that responds to deviations of trimmed mean inflation from the inflation target, the unemployment gap and the ... The central bank adjusts interest rates to ensure that
https://www.rba.gov.au/publications/rdp/2019/2019-07/full.html
A Stylised Description of the Model
23 Aug 2019
RDP
2019-07
The central bank sets the cash rate according to a monetary policy reaction function that responds to deviations of trimmed mean inflation from the inflation target, the unemployment gap and the ... The central bank adjusts interest rates to ensure that
https://www.rba.gov.au/publications/rdp/2019/2019-07/a-stylised-description-of-the-model.html
Model Dynamics
23 Aug 2019
RDP
2019-07
However, housing prices remain well below their initial level. This reflects the fact that monetary policy targets inflation and full employment, not asset prices. ... The RBA has been broadly successful in meeting its inflation target over recent
https://www.rba.gov.au/publications/rdp/2019/2019-07/model-dynamics.html
Core Equations
23 Aug 2019
RDP
2019-07
We calculate these measures by adjusting nominal interest rates for year-ended trimmed mean inflation. ... Similarly, growth in foreign prices converges to the Australian inflation target.
https://www.rba.gov.au/publications/rdp/2019/2019-07/core-equations.html
What is MARTIN and What is it Used for?
23 Aug 2019
RDP
2019-07
foresee. Another example of judgement could be if the staff forecasts take a different view than MARTIN about the speed at which a change in wages growth would feed into inflation. ... Footnotes. See Cassidy et al (2019) for an example of the use of
https://www.rba.gov.au/publications/rdp/2019/2019-07/what-is-martin-and-what-is-it-used-for.html