Another example can be extracted from our monetary analysis: consistent indications that broad money growth was increasingly due to its most liquid components has contributed in recent months to a gradual tilt of the balance of risks perceived to be signalled by our monetary analysis. It was not the behaviour of aggregate M3 per se which altered the outlook for price stability.
It was the realisation that the structural force at work behind persistently abundant liquidity was becoming increasingly connected with final spending and pricing decisions. As I said at the start, the complexity of the analysis required to predict our moves has not materially impeded market participants in responding meaningfully to incoming data.