WELLINGTON (Reuters) - The Reserve Bank of New Zealand on Wednesday said it had renewed its policy target agreement with the finance minister for the six-month period after Governor Graeme Wheeler steps down in September.
The agreement, unchanged from the last one, signed in 2012, left the central bank's target for consumer price inflation between 1 percent and 3 percent on average over the medium term.
"The existing PTA has served New Zealand well and there are benefits in maintaining consistency in the agreement," Finance Minister Steven Joyce, said in an emailed statement.
"The renewed agreement will maintain continuity and stability in the monetary policy target over the election period and during the period of appointment of a new Governor," he added.
The agreement will apply from Sept. 27 when Deputy Governor Grant Spencer becomes the acting governor until March 26.
New Zealand's central bank is due for an unusual level of leadership uncertainty in late 2017 as the end of Graeme Wheeler's first term coincides with the national elections due to take place on Sept 23.
Wheeler announced in February that he would not seek a second term and that Spencer would take the helm as the bank searched for a permanent chief.
(Reporting by Charlotte Greenfield; Editing by Robin Pomeroy and Jonathan Oatis)
