Turning to the monetary analysis, the latest developments confirm that the stimulative impact of the low level of interest rates remains the dominant factor behind the high trend rate of monetary expansion.
As for the Bank’s outlook for prices, looking at the medians of the Policy Board members’ forecasts, the year-on-year rate of increase in the CPI (all items less fresh food) is projected to remain at 1.0 percent for fiscal 2015 due to the substantial decline in crude oil prices, but to reach 2.2 percent for fiscal 2016.