It involves decisions around the bank's value and long term ownership. It is important to have options for the initial phase that avoid destroying future economic value or squandering tax-payer money, or that ultimately reduce the options in phase two.
While we have been successful in meeting the target – for the past 15 years, inflation has averaged almost exactly 2 per cent – it's important to remember why inflation control is so crucial. Low, stable, and predictable inflation contributes to better economic performance.