In the context of the November Monetary Policy Statement, non-traded inflation is forecast to pick up from late 2018 in response to increasing capacity pressures.
If this response does not 10 / 12  BIS central bankers' speeches  eventuate then we would have to consider a further easing of policy to generate additional domestic demand pressure, particularly if global inflation remains low in line with our forecasts. However, we would need to be careful not to generate unwarranted instability in output, the exchange rate or indeed household debt.