However, one lesson taken from the Great Depression and other economic crises is that a hasty revision of monetary policy would actually undermine a nascent economic recovery and end up triggering a new crisis. As a policymaker, I take this lesson to heart.
On this score, the Bank, under the current policy framework, commits to continued expansion of the monetary base until the year-on-year rate of increase in the observed consumer price index (CPI) excluding fresh food exceeds 2 percent and stays above this target level in a stable manner.