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
Disagreement about Inflation Expectations
1 Apr 2016
RDP
2016-02
As discussed in the introduction, one justification for relatively low inflation targets is that low levels of inflation are likely to be associated with low levels of uncertainty about inflation. ... In addition, inattentiveness might actually suggest a
https://www.rba.gov.au/publications/rdp/2016/2016-02/full.html
Conclusions
6 May 2016
RDP
2016-02
This is consistent with inflation expectations having become better anchored at the RBA's inflation target since the adoption of inflation targeting in 1993. ... This is consistent with the presence of information rigidities, but also imperfect
https://www.rba.gov.au/publications/rdp/2016/2016-02/conclusions.html
Descriptive Analysis
6 May 2016
RDP
2016-02
Sources: ABS; Authors' calculations; Consensus Economics; RBA. Figure 2: Year-ahead Inflation Expectations. ... As discussed in the introduction, one justification for relatively low inflation targets is that low levels of inflation are likely to be
https://www.rba.gov.au/publications/rdp/2016/2016-02/descriptive-analysis.html
Introduction
6 May 2016
RDP
2016-02
s inflation target. ... when current inflation deviates from the middle of the Reserve Bank of Australia's (RBA) 2–3 per cent target.
https://www.rba.gov.au/publications/rdp/2016/2016-02/introduction.html
Time-series Variation in Disagreement
6 May 2016
RDP
2016-02
the RBA's inflation target band. ... However, we find that disagreement does tend to be relatively high when year-ended CPI inflation deviates from the middle of the RBA's inflation target, except for the consumer survey
https://www.rba.gov.au/publications/rdp/2016/2016-02/time-series-variation-in-disagreement.html
Are Consumer Expectations More Weakly Anchored?
6 May 2016
RDP
2016-02
In addition, inattentiveness might actually suggest a narrow distribution, if many responses are always equal to the inflation target. ... The ‘inflation’ question elicited fewer extreme responses than the ‘prices of things you buy’ question, and
https://www.rba.gov.au/publications/rdp/2016/2016-02/are-consumer-expectations-more-weakly-anchored.html