In short, while we can not eliminate cycles in economic activity, we believe that monetary policy aimed at price stability can smooth economic cycles to some degree. This means that when inflationary pressures increase, we can be relied upon to tighten.
3 / 14  BIS central bankers' speeches  A similar ranking of economic conditions is apparent in the growth rate of household consumption. Consumption growth has generally been stronger in the south-east over the past few years and weaker in the mining states (Graph 3).