Then, as inflation began moderating, we were patient, and we communicated that we would prefer to see inflation stabilise at around the middle of the target range. Inflation has since largely cooperated: over the past three years, it has averaged 4.6%.
Progress has been somewhat more rapid than we had expected, in part due to lower food prices and an exchange rate recovery, which helped to bring down underlying inflation. That has created extra space to lower the repo rate. With the January MPC cut, the repo rate is now down to 6.25%, its lowest level since 2015.