Think also of the impact on consumption spending, and the demand facing large parts of the business sector, if the household savings rate were to move back to 10 per cent of disposable income over a relatively short period of time. And of the possible implications then for the quality of bank loan books - built up at times when demand has been strong.
The other is to provide the public with a lucid explanation and promote their understanding of the Bank’s evaluation of economic and price developments as well as the thinking upon which it bases its policy decisions.