And we indicated that interest rates will likely need to go higher still to bring inflation down to the 2% target. Later this month, we will take our next monetary policy decision, and we will update our economic outlook for growth and inflation at that time. But today I want to do three things.
First, fiscal policy has become more important as a macroeconomic stabilisation tool, also once we leave the pandemic behind us. And, second, if people associate higher inflation with worse personal economic outcomes, then we should become better in explaining to the public what it is that we do and why current low inflation may be harmful to growth and employment.