It was an assessment of improving prospects for inflation, and the associated scope for additional growth, that lay behind the three easings in the second half of 1996. We would like to have seen that pattern of news continued, but the latest data on wages seems to have been a setback to that expectation. Other views Of course, not everyone agrees with this approach.
There are those who think a much higher figure for growth is achievable and should be pursued. Their approach would be to nominate a figure - I have seen 5 per cent mentioned - and expect the Reserve Bank to adjust monetary policy to achieve it in the long run (not just for one year).