These include the easing in monetary conditions, continued high levels of migration  7  The growth rate of potential output is considered to be around 2.6 percent. BIS central bankers’ speeches  7  and labour force participation, ongoing growth in construction and continued strength in the services sector.
A relevant issue is how rapidly the Bank should seek to return inflation to the mid-point of the target band. There are important trade-offs here that can come at the expense of unnecessary volatility in output, interest rates, and the exchange rate – outcomes that, under the PTA, the Bank is required to seek to avoid.