In  determining  response,  the  inflation  forecast  the is  appropriate  considered  policy  alongside  indicators of financial stability and economic activity, including  11  relevant information from the quarterly Business Expectations Survey. Monetary policy in 2021 was conducted in an environment of below-trend economic activity and a favourable medium-term inflation outlook.
The increase in inflation was judged to be transitory, of short-term duration and propelled by factors that, except for secondary effects and expectations, monetary policy would have no direct influence. There was, therefore, scope for maintaining an accommodative monetary policy stance in support of stronger output growth.