We will be looking closely at all the influences on inflation over the coming year – including the demand pressures in the economy, the growth of wages, and the level of the exchange rate – in order to judge how they will collectively influence the outlook. Monetary policy will then be set accordingly.
We will also, of course, be closely watching developments in the real economy, the labour market, financial markets and our exports and imports. There is a wide range of statistics available on an almost daily basis, from the Bureau of Statistics and from other sources, which chart the course of these economic variables.